I had an interesting meeting this weekend with a commercial real estate investor in Reading, PA. This investor has several projects in different stages of development throughout the city. He asked me to sit down and discuss his overall portfolio and help him figure out if and how I can help him. Although this was only the second time I've met with this individual, he was very open about his situation and was willing to discuss several different options for each of his properties. After our meeting I walked away thinking that we had covered a lot of ground, and I wondered what it was that made it such a productive meeting.
It took me a little while, but I realized that the answer was trust. This investor was willing to trust me, a relative stranger, with a lot of information about his situation. I've met several investors who play their cards very close to their chests. Some would never dream of telling me about their other properties until I got the first one sold. By sharing a lot of information, this investor allowed me to get a very good understanding of his motivation, needs, and wants. Each of his properties is unique, and by discussing all of them, I am in a better position to offer my advice about what will most benefit him.
Like most investors, he is interested in maximizing his return on investment. Once I fully understood his situation, it became clear that I could help him most by leasing some of his properties, but selling others. I think that some investors are worried that if they tell me about their whole portfolio, I'll somehow talk them into selling everything. Maybe they're worried that I'll tell all of their secrets to my friends. I'm not sure. What I do know is that by keeping information from me, they are making it more difficult to give the best advice for their unique situation.
It's important to choose a real estate professional that you trust, and are willing to share information with. That is the only way you will get the full benefit of their knowledge and experience. A mediocre agent will full information will outperform an incredible agent with a limited understanding of your situation. How much information do you share with your agent?
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