5 Characteristics of Successful Commercial Real Estate Investors

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With over 65 years of commercial real estate experience and more than 200 investors who utilize our services, we have noticed some characteristics of those who are successful investors across all types of investments. Wondering if you’ve got what it takes to be a commercial real estate investor? Work through our list of characteristics and action items below!

  1. Successful real estate investors have a plan.
    1. They know their goals, how much risk they are comfortable with, what types of assets they want to focus on, and they regularly monitor their investments. They also regularly review their plan and adjust as needed.
    2. Action Item: Do you have your investing goals written down?
  2. They are patient.
    1. Successful investors have a long-term mindset; they’re not looking for a quick buck but rather seeking to create sustainable and generational wealth through their investments. They are willing to wait for the right opportunity to come along, even if that means waiting months or years.
    2. Action Item: Have you defined what the “right opportunity” looks like for you? Are you willing to wait for it?
  3. The most noteworthy real estate investors are relational.
    1. They build strong relationships with real estate agents, brokers, lenders, property managers, and other industry professionals. They use these connections to find new investment opportunities and increase value on their current investments. They also contribute value to their network – they’re not merely takers.
    2. Action Item: Identify two to three places where you can begin to build strong relationships with your local business community (such as the Chamber of Commerce, local business networking groups, etc).
  4. They value diversification.
    1. Strong real estate investors will spread out their capital across various regions, commercial real estate types, and other asset classes to reduce their risk and increase returns.
    2. Action Item: Does your investing plan (see #1) include the idea of diversification?
  5. The best commercial real estate investors are continually growing.
    1. These investors are continually learning and analyzing. They research markets and properties; they stay up-to-date on trends and laws; and they’re consistently asking questions to learn from their network (see #3) and other investors.  
    2. Action Item: Identify 2-3 areas where you want your knowledge to expand. Now ask yourself: who do I know or know of that has more knowledge than me in this area? Can you schedule a meeting with them? Do they publish a newsletter or blog that you can read regularly? Schedule these into your calendar to ensure they happen!

Looking for more information about commercial real estate? Check out our other Helpful Tips!

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