Why I Love Real Estate
Why I Love Real Estate!
By Christopher Starr
There are many reasons to love real estate and a book could be written to share them all. However, I found it best to describe why I love real estate by sharing three key elements of the business. Have you ever watched the television show, The Profit on CNBC, with Marcus Lemonis? Mr. Lemonis describes how he looks for three things in business; the people, the process, and the product. I found this as a perfect way for me to share why I love real estate.
There are several phases that take place throughout the life of a real estate investment, some of which will be presented in future articles. While each process or stage of a real estate investment is critical, it all starts with sourcing acquisition opportunities in your selected market. After the flow of opportunities presents themselves, those that make it through are then underwritten, or analyzed to determine if the numbers make sense and if the potential return is sufficient to offer investors. Once acquired, then the business plan is executed, which for IndyCal often means renovating the property and improving operations in order to increase the property’s value. We work closely with the chosen property manager, during our hold period, to ensure the asset performs at it’s best and that residents have a safe and enjoyable place to live or work. Once we’ve reached the predetermined exit time, we consider whether the best strategy is to sell the asset, or refinance and continue to hold. This process is duplicated adding to a portfolio of assets.
Real estate comes in many different shapes and sizes, from a single family house to city skyscrapers. Real estate is where we live, shop, work and find entertainment. With each of the different asset classes comes a different level of risk and reward for investors. Some investors focus on one asset class, while others have portfolios with a mixture of property types. I’ll go in more depth in future articles about the different real estate asset types, but it’s exciting to me to see an old, outdated, underperforming property go through a transformation to become new again providing a great new place to live, work, or play, while providing investors a safe return on their money.
Finally, probably the most important and exciting reason why I love real estate. You have an opportunity to work with many different people on every project. It’s the people that work on each project that make it successful, and if it weren’t for people, we wouldn’t have customers to rent our apartments, offices, or retail stores.
No deal is ever the same. We find a troubled property, ensure it meets our guidelines, then bring together several professionals that are involved throughout the process. Bringing all of these elements together is what I truly love the most.
Whether you are a current real estate professional or have an interest in real estate, what is it about real estate that you love and why? Share in the comments below!
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