Dual City Investments
Don’t buy a deal off of a broker’s offering memorandum or what the seller tells you. Verify all pertinent information of the deal and do your own due diligence. It is essentially on you, as the investor or sponsor, if you miss something and/or things go wrong.
Every deal has its own intricacies you can’t anticipate or uncover in due diligence. Allow for contingencies and expect curveballs. If a deal only works if things go perfectly as planned, then in our experience, that deal probably doesn’t work realistically.
We believe strongly in having a support team to help navigate the challenges of commercial real estate. Your team can include but is not limited to partners, management, attorneys, accountants, etc. No matter what you may have heard, most commercial real estate is not passive mailbox money and even Batman needs a Robin.
You can poke holes in every deal, and if you wait for the perfect deal, you won’t ever buy anything. Find the issues, and some of those should deter you from pursuing an investment opportunity, and for others you have to have contingency strategies for–and get comfortable with–a level of downside risk. If the upside is worth it, and you can live with your perceived downside risk, then pull the trigger.
From what we usually see on social media or podcasts, it seems like everyone in commercial real estate just makes a ton of money and doesn’t have to do any real work. This is a falsity. Investing in commercial real estate can be lucrative, but you can also lose all your equity–even more if using leverage–and owning commercial real estate is definitely work no matter how passive the investment looks initially.
Conclusively, do your research, lean on your team, find the issues and plan for contingencies, and if you can get comfortable with the deal, then jump in!
Dual City Investments is a commercial real estate investment firm built on fidelity and integrity while focusing on providing private equity investment opportunities with investor security as our priority. Our firm’s mission has been to produce consistent investment returns through a systematic approach across investment real estate and specialty asset classes. We provide trustworthy and consistent real estate investment options and specialize in identifying opportunities that allow for long-term wealth building.
204 Westfield St.
Suite 201
Greenville, SC 29601 -USA