Maarten de Jeu has made a name for himself as a business advisor working with notable Fortune 100 companies and wealthy individuals in the US, Canada, and Europe, and even middling tech companies. One area of expertise is acquiring commercial real estate, covering everything from office space to hotels, industrial sites to apartment buildings. For those looking to invest in such a venture, de Jeu has some tips to get them started.
Commercial real estate is a solid way to diversify an investment portfolio, one that isn’t subjected to the ups and downs of the stock market. This doesn’t mean that risk is taken out of the equation. Like any investment, there’s some tested wisdom that applies when making financial decisions.
The appealing aspect of owning real estate is the ways it can generate revenue, through rent and fees and an increase in the property’s value. Addressing one can influence the other. For example, painting, changing lighting, updating appliances, and modernizing a property through a renovation can increase the property value, allowing the landlord to increase rent and fees or sell the property for a higher price.
It’s important to remember that commercial real estate, much like any other investment opportunity, is a business venture that requires diligence and time to reap any benefits. For this reason, de Jeu says investors need to regard acquiring real estate as a people business. Learn more: https://www.behance.net/maartendejeu
Commercial real estate investors will have to spend time building relationships with other investors, lenders, and other interested parties who may come to an investor’s aid. As properties become more elaborate and expensive, it’ll become clear to any investor that they can’t cover all costs on their own. To get the assistance of other investors they’ll need to build relationships, and they must be rooted in trust.
Investors can grow their professional social networks by attending networking events. Those with the means might be able to host their own. Either way, they’ll have to make the right first impression. De Jeu suggests making a credibility packet, something to hand out to private lenders so an investor can establish their professional bona fides by sharing personal professional information, detailed business plans, testimonials, and other relevant information that will make an investor seem serious about their ventures as well as trustworthy.
Before private investors are willing to trust new players in the local real estate market, de Jeu says that investor has to be well-read on the business. Assessing potential properties is key to making investment decisions. This entails exhaustive research into the property itself, the neighborhood, the market, and all variables that will affect the value of the property. To do this, investors will have to attend more than their fair share of open houses, an opportune time to inspect the property and make note of any repairs that may have to take place once the property is purchased. Or decide to move on to another property as this one may incur too much risk.
However an investor chooses to move forward with a property, de Jeu says it’s typical to remain involved in the development of their acquisition. Making sure incoming tenants are satisfied with their new accommodations, and that the property manager the investor hires is up to the task. While there is still a great deal of risk in this venture, de Jeu believes that the right preparation, financial backing, and planning can, in time, pay off.
About Maarten de Jeu:
Maarten de Jeu is an international business and financial expert and consultant. Graduating first in his class from the University of Oxford, he took his MBA to Aviva plc. After a time as their Director of Strategy and Corporate Development, I went to work for their office in London as an International Strategy Manager. There he caught the attention of TVDK Management Consultants, making professional relationships with industry leaders which lead to the launching of SVM Business Advisory in Chicago in 2012, where de Jeu helps smaller businesses reach the international stage.