Sales Meeting Strategies in Commercial Real Estate Brokerage Today

In commercial real estate brokerage, the weekly sales meeting can be a powerful tool when it comes to building the market share momentum for the real estate business and the sales team. The meeting can be well planned to achieve positive leverage and momentum across the agency.

With most agencies today, the weekly sales meeting is a good idea to keep the agents on focus and task. That being said, an agenda is required to achieve that. Minutes should also be created from the meeting to track and measure the efforts of individuals. Good salespeople thrive on positive recognition and individual performance tracking. They understand the benefits of the process.

Weekly sales meetings should occur in the mornings before the business day commences. They should also take no longer than 1 hour so that that the team can get back to the marketplace and the daily activities required.

So the goals of the sales meeting should be to achieve the following:

  • To encourage the team forward with activities in listings and commissions
  • To sustain the momentum and the focus across the group in a positive way
  • To track and measure the activities of individuals
  • To establish positive communication between the sales team and the administration team

It should be remembered that most salespeople dislike lengthy meetings. Any top agent or broker will prefer to have a firm agenda to stick to when it comes to weekly reporting and meeting attendance. The team leader or the sales manager should control the process.

Here are some tips to help you establish a positive process of meetings for your sales team:

  1. The location of the weekly meeting should be varied to encourage activity and attendance. You can move the meeting between different venues and times of day. Breakfast meetings are usually quite successful, and the same can be said for lunch meetings. You will however need an agenda for the process.
  2. Peer group praise will always be a useful tool within a successful sales team. The team leader or the sales manager for the agency should encourage that activity. When a salesperson has achieved great success or an extraordinary deal, share that information around the group at the right time and in the right circumstances.
  3. Once a month allow the full sales team and the administrative team to come together as part of social drinks. The interaction between both groups will be important for the success of the agency.
  4. Establish a points system between members of the sales team. The points system should be varied based on a number of different criteria. In that way you will be recognising and encouraging everyone, and not just the top agents with the best deals. Look at the different achievements of the week including the best deal of the week, the best marketing campaign, the greatest numbers of inbound calls, cold calling targets, exclusive listings, and new meetings.

Top agents and brokers like efficiency. They also like to get to the point quickly and effectively. Any sales meeting should take no longer than 1 hour, minutes should be created, and agendas should be circulated prior to the next meeting. Respect the time of your top agents, and they will respect the attendance requirements at your sales meetings.

Commercial Real Estate Agent Prospecting Facts and Strategies

When you work as a commercial real estate agent or broker, it is essential that you develop and implement a prospecting program to generate new business leads. It is a personal process and it is not something that you can or should delegate.

I am amused sometimes when I hear that an agent has paid considerable money to a marketing company to ‘cold call’ their entire sales territory or market segment looking for leads and prospects to serve. Delegating the prospecting process to a marketing company or another ‘unskilled person’ is a waste of time and money. Commercial real estate is an industry built around personal relationships and trust; a marketing company or employed canvasser cannot offer that level of communication or service.

So why would a real estate agent employ such a ‘marketing firm’ to make prospecting calls? The answer in most cases is glaringly obvious; the agent doesn’t have the skill or the discipline for the prospecting process to be successful.

If you want to win the new business, then you will need to do it yourself. Yes, it takes time to get results and you will need to develop some new skills, but discipline will help you get to the results that you are seeking.

One thing should be said here; commercial real estate brokerage is tremendously rewarding for the sales people that can work hard and to a system or plan. Looking for leads and opportunities is part of the process or game. It’s a personal thing and it can’t be delegated.

Here are some way’s to find new business, better property listings, and good clients:

  • Redundant Properties – Some properties will move to a level of redundancy due to age, deterioration, change of zoning, or lack of tenants. When this happens it is time to move to the next phase of the property ‘lifecycle’. A good real estate agent can see the signs early and work closely with a property owner as they start to deal with the issue of investment change.
  • Vacant Land – As a city expands or suburbs change, vacant land will be rezoned for new development. Keep ahead of this opportunity by monitoring the planning and development applications at your local planning approvals office. Get copies of the public minutes of the planning committee meetings.
  • Old Listings – Some listings don’t sell or lease at the first attempt. What you can do here is withdraw the property from the market today and then revisit the property marketing effort a few months later in another and perhaps different marketing approach. Refreshing a listing is a valuable business process.
  • Open Listings – The best way to sell or lease a property is through an exclusive listing process. Open listings are very much a process of luck; most open listings stay on the market for a very long time and on average are far less successful when compared to the dedicated marketing efforts of an exclusive listing. Revisit old open listings to see if they can be optimised for a fresh marketing effort.
  • Larger Businesses – Local businesses are involved in property either as tenants or as owner occupiers. Business owners will need help with property from time to time. The best way to tap into that opportunity is through direct and ongoing contact. Cold call every business in your town or city and speak to them regularly about property needs and changes.
  • Surrounding Other Listings – When a competing agent puts a property on the market, you can use that listing as a reason to talk to all adjacent and nearby business and property owners. One property listing can be the catalyst to talk to others to see if they would like to compete or do something themselves.
  • Street Canvass – On a street by street basis, systematically move through your sales territory and research all property owners. Eventually you will create a good list of owners for your database. Ongoing contact will allow you to build valuable client relationships and the levels of trust that help grow commissions and listings.
  • Cold Calling – The telephone remains the most effective business tool that we have. Direct calls handled in a professional way will help you reach out to new people. Selectively researching the property owners and business people in your area will support the cold calling process.

A simple list like this will give you an abundance of property leads and opportunities. The secret to making things work for you is in doing it yourself.

Tips To Help You Achieve Success As A Real Estate Investor

If you are looking for a great way of building your net worth, investing in real estate is a great idea. You can make a lot of money if you do it the right way. However, if you don’t follow the right techniques, this venture can cost you a lot of money. Therefore, we have shared a few tips with you that can help you achieve success as a real estate investor.

Opt for a Good Location

Location is the first thing that people consider when they need to buy a residential, vocational or commercial properly. Ideally, the property you are going to buy should be near a workplace and school. Similarly, if it’s close to the marketplace, people can go there without burning a lot of gas or killing a lot of time. Therefore, it’s much better to choose a better location.

Upgrade or Renovate Your Property

It’s better that you upgrade your property features to make it more appealing. For instance, you may add home automation, such as automated lighting. The same is true about commercial real estate as well.

If you offer wheelchair lifts, for instance, it can make your property more useful for people with disabilities. This will attract many more buyers. Actually, it all depends upon how convenient your property is. If your property offers features that can help people make their lives easier, more people will show their interest in what you offer.

Improve Property Conditions

More buyers will contact you if your house or apartment is well maintained. However, make sure you don’t go beyond the limits. In other words, you may not want to spend an arm and a leg just to make your property more beautiful. It won’t increase the value of your property exponentially. Although it may be worth it in certain situations, spending too much is not a good idea.

Let’s take a look at a few tips that can help you make your property well-maintained.

Kitchen: if you do it right, your kitchen can increase the value of your property by up to 80%. Therefore, if you renovate your kitchen by spending $15,000, you can sell your house at 80% higher price.

Plumbing: we all need clean running water. Keep in mind that rusty pipes pose a health hazard in addition to reducing the beauty of your house.

Landscaping: If you maintain your landscape properly, it can add ambience to your house or apartment. In addition, landscaping helps reduce your energy bills.

Do Your Research

Make sure you consider the type of people that you think will be suitable if you want to sell or rent your house. If you want to get the highest return on your investment, make sure you contact the right people. Otherwise, you won’t be able to earn a lot of profit or find good buyers. Opting for the right clients can help you find a great deal.

Conclusion

So, these are a few tips that you can follow if you want to get the most out of your investment. Hopefully, you will find these tips pretty helpful.

Learning How to Do a Sales Pitch or Presentation in a Commercial Real Estate Agency

In commercial real estate today the pressure of presenting and pitching your services can be high. Most opportunities for a listing will involve a few agents all chasing the same listing opportunity. This then says that your presentation process should be finely tuned and very professional.

The ‘generic’ approach to presenting your services to a client today just does not work. In every respect your presentation needs to be of the highest standard. To help you with that I have given you some tips below:

  1. Check out the client’s situation prior to developing any thoughts about the property and how you can take it forward. Find out why the client may be selling or leasing the property today; that information may impact your choices of property promotion. Find out why the client purchased the property in the first place. Also ask them about their impressions of property features and improvements.
  2. Get the facts of the market locally. There will be some competing properties in the general area that will tell you something about prices, rents, enquiry, occupancy and time on market. Get all of those facts together as part of your preparation to meet with and make recommendations to the client.
  3. Walk the streets around the property. As simple as this seems, the process of getting out of your car and walking helps you see and observe many things that you would normally overlook.
  4. Understand the property legally and physically. Most properties will have issues that are of impact to the marketing campaign. Look for the ‘hurdles’ that could affect your choices of marketing and inspecting the property with prospects. It is wise to remove the ‘hurdles’ prior to commencing property marketing.
  5. Know about the precinct and its history. The records of sales and leases should be accessed so you know what has happened in the area over the last few years.
  6. Give information to the client about the best alternatives in marketing and inspecting the property. They like to have choices and understand the logic behind each. In that way they will not be limited or frustrated in the final agent choice or decision.
  7. Show some successes as a local agent. Most clients want to work with the best agents and those that really know the local area. Have some examples handy of relevant property transactions that you have been involved with previously.
  8. Be relevant in your presentation and provide a visual time line to the actions that you will be taking. The client can then see how you will be moving things forward for them in a timely way. If anything, that will give them more confidence when it gets to the final choice of agent.

Presenting and pitching your services as a top real estate agent does not have to be hard. You can make a deliberate choice to be the best agent for the job and give the full facts of the process in moving ahead. Confidence is the key.

Proof of Funds for Commercial Real Estate Investors

Creative Financing

When a Commercial Real Estate Investor is looking to purchase income producing property utilizing any number of creative financing methods, one of the most important keys to their success is that their ability to provide adequate, verifiable proof of funds – P.O.F.- to both the seller and the lender. The verification of funds can enhance the investors credibility with the seller as well as satisfy the lenders requirement to know that the borrower has necessary funds to complete their transaction.

Proof of Funds

There are a few ways acceptable to lenders and sellers to show P.O.F. to close your Commercial Real Estate transaction:

  • Bank Statements or Bank Verification
  • Brokerage Account Statements or Verification
  • Escrow Account Verification

“Bank Verification” This is the most acceptable and widely used method to confirm the investors can complete the proposed deal. As such money must be put into a bank account and confirmed by statements or letter from the banker.¬† This is a “hard” (versus soft) method of verification, because money are deposited in an account in the buyers name to serve as proof the buyer can complete the transaction.

“Brokerage Account Verification” Similar to bank accounts, brokerage accounts show acceptable means to complete a purchase transaction. Likewise, statements or letter from the brokerage house representative will meet the requirement to prove adequate financial strength. This is also a “hard”¬† method.

“Escrow Account Verification” This is the one method that can be hard or soft evidence of necessary assets as the escrow agent simply needs to write a letter of confirmation attesting that the borrower has finances available to complete the transaction. It becomes hard when money is transferred¬† into an escrow waiting for the closing.

Companies

Finally, there are companies whose sole purpose is to provide evidence of the financial ability of Commercial Real Estate Investors to complete their transactions. Many of them provide “Proof of Funds” and Transactional Financing. P.O.F. is necessary at the beginning of the deal and Transactional Financing is for the day of closing only. Both of these methods are a necessary part of an investors arsenal when utilizing creative financing.

Key Priorities in Personal Prospecting in Commercial Real Estate Agency

In commercial real estate agency today, you as an agent really do need a personal prospecting system. When you can establish a prospecting system that is geared to the local area and your relevant property experience, things get a lot easier when it comes to market share and growing your commissions.

One key problem that exists in the commercial property industry is that many agents work with far too few clients. When they lose a few key clients, they lose a massive amount of income and momentum. It takes time to build up good and productive client relationships.

Your personal prospecting process should bring new clients into your ‘pipeline’ of client contact and networking. Be prepared to lose a few clients every 6 months or so. Prepare for the loss by building new relationships. Nurture good clients and quality listings; it is a deliberate process that is ‘formulated and commenced’ at an individual level.

The cycle of commercial real estate sales and leasing is quite long. On that basis it can be months if not years before a client is ready to act in a sale, purchase, or lease. Your networking system has to continue in a relevant way for the ongoing time to capture that business. The only thing that you should determine at the outset of a first contact is that you then know that the person or prospect has the potential to need your services in the future.

Here are some other tips to help you with your personal prospecting system in this property market and economy:

  1. Define your business area and your property type so you clearly know where you are focusing. You should also determine why people should use your services. If you cannot establish that information for yourself it will be very hard to sell and pitch the idea of your services to anyone else. Confidence and relevance are key factors in presenting and pitching your agency services. You must be better than the competition agents; how can you do that?
  2. Given your special services, why are you a top agent? Can you sell that idea to a prospective client? What can you do that is more relevant and real than some of your competitors? Over time these things will need to grow and consolidate. They must become part of your personal brand.
  3. At any time and in any market you will find clients that are under property pressure in some way or form. Through consistent daily prospecting you will locate these clients and you can work with them to solve the ‘property pain’. If you are lacking clients and listings now, take a serious look at your prospecting systems and efforts. Most of the agents that are struggling are those that do not prospect enough. I have met agents that admit that they do little or no prospecting at all; I then wonder why they even bother being in the industry given the costs and pressures that apply to the average agent. Every property market has opportunity to identify and action.
  4. Track your prospecting efforts so you can see where you are progressing in conversions, calls and meeting outcomes. It takes about 3 or 4 approaches to some prospects and targets to get them to let you have a meeting with them. Consistency and relevance in contact are the key factors. When you ‘open the right doors’ with prospects, keep them open through ongoing relevant contact.

Given all of the above, the prospecting time that you apply to your career every day should be split 50% to established contacts, and 50% to finding new prospects. In this way you can build market share for the time that you lose a few good clients. Understand what works for you in commercial real estate and repeat the process over and over again. That’s a good way to get more new business.

Tips On Picking "Sleeper" Real Estate Property

Real estate investing is all about perception. Your perception of where the market is going, in conjunction with where it’s actually going. The aim, as always is to buy low and sell high.

You want to buy a cheap tract of dirt and sell it as a high priced piece of developed real estate, after it’s appreciated enough to turn a tidy profit. Selling the property is an art in and of itself.

Buying an initial tract of dirt lends itself to some solid, rational guidelines:

First, look at trend lines for housing prices in your area. While most housing markets are in decline (and the housing markets in Florida and California are adjusting from more than a decade of over-valuation), there are markets where the housing prices are going up. This is a decent leading indicator that there’s a market for expansion.

Second, look for job related news. Home purchases require a steady source of income. New employers moving into a city, or a government branch office opening up are a strong indicator that good, well paying jobs are likely to come up. Where well paying jobs roost, home purchases follow.

Related to this, talk to your local city planning office. Are there recent purchases of “right of ways” to lay down sewer lines? Is the local telephone cable making plans to run out fiber optic lines – a “must have” trend in new home construction. These things point to areas where home growth is immanent. Other big tip offs are school bond issues (found in your local news paper) and new parks being opened up.

Before you look at the land, check out the adjacent commercial real estate usage. Look for “family friendly” or “residential friendly” commercial properties: Houses that are close to grocery and clothes shopping tend to fetch a higher price than ones that are farther away. If there’s a movie theater nearby, or plans for an elementary or middle school, factor that into the size of the homes you build, and what their amenities will be; buyers looking for those features are looking for “mover upper” homes – with a bit more floor space, and two (or three) bedrooms for the kids. Other spots to look for are anchor stores, like Wal-Mart and Best Buy. These companies spend millions on surveys of purchasing patterns before buying a store location; if they’re buying a plot of land, you’ve got about a year to a year and a half window to look into nearby real estate for single family residential and rental residential properties.

You can even flip this on its side – if you can talk to a group of commercial real estate investors, building a shopping center as the nucleus for home development is also a viable combined strategy. This also applies to highly urban areas. Many downtown areas that have been abandoned by businesses can be converted to apartment buildings, and some of the older housing projects are being torn down for mixed-use spaces with combined commercial and residential areas. In particular, you can often get block grants to help with the financing on projects like this, and there are programs from HUD that can help out a great deal with “urban renovations”.

Another source to investigate is the demographics in your area. Look at the US Census figures (and local county figures) for median age, and median birth rate per capita. You want to invest in areas where the population is growing already. High skews in the ’40s and ’50s indicate that you’ve got a bunch of people who are going to retire soon, and retirees are highly prone to selling properties off. Places to watch carefully are most of the urban parts of California, and great swaths of the rural Midwest, where demographic trends have been changing entire towns since the 1950s as the country’s population has shifted to urban areas.

If there’s a local planning council, or urban development council, make it a point to get the minutes of all the meetings from the past year. The city council offices will have them on file as a matter of public record. Also try to get into the next range of meetings as an observer. Discuss with the city and county managers where they see housing and construction trends moving. What you’re looking for is real estate that will be desirable in two to three years; look at road planning atlases, and look for all the data you can find. Also look for real estate that will be scenic – lake front property is as close to a guaranteed bet as you can get in real estate investing, particularly if there’s a lake that’s at the “far end” of a development axis. Likewise, if there’s land that the city council is looking to acquire for parks, buying the adjacent lots now means you’ll be able to sell them later.

Lastly, talk to the professionals in your communities. Talk to architects who can tell you if they’re busy or not. Maintain professional contacts with engineers, bankers and attorneys. They will usually know about projects well before the general public. Also make a habit of reading the local newspaper’s business section. Often times, the first clue that a business may move in to your area is buried at the bottom of a column on page 8.

Using the guidelines suggested above will help you to find “sleeper” raw land properties. These “sleeper” properties are perfect for the buy low, sell high strategy used by successful commercial real estate investors.

Top Gun Prospecting Tips in Commercial Real Estate Brokerage

In commercial real estate brokerage, the prospecting process is critical to the commissions and listings that you attract. The best agents and brokers in the industry have a quality approach and system when it comes to prospecting for new business. Every day they are implementing their system into new segments of the market and with new clients.

To revitalise your career and your market share, you can adopt a ‘top gun’ approach to all of your new business efforts. You could say that the approach is based on an ‘attitude’ more than anything else. When you direct your thinking towards creating new clients and new business, everything tends to follow with leads and opportunities.

Action is the key to getting anywhere in this industry. It really doesn’t matter what agency or brokerage you work for; personal branding and networking will allow you to achieve the results you want with listings and commissions.

Here are some ‘top gun’ tips to help you with your growth of market share and client conversions:

  1. Make it easy for people to contact you. Over time extend your brand into the local area and with the right people through constant contact. To do this correctly, you will require a networking and contact model that devotes 50% of your time to current contacts, and 50% of your time to new contacts.
  2. Take advantage of technology through the use of auto responders, e-mail marketing, social media, mobile telephones, and call prospecting. The ultimate goal in any new business effort is to get in front of the right people to establish a long-term relationship. In our industry, the elements of trust and knowledge go hand in hand. It can be many months if not years before someone is ready to use your services. Staying in contact over and for the long term is really important.
  3. Be prepared to put in the time and the effort when it comes to building your market share. Every day approximately 2 or 3 hours should be devoted to the prospecting and networking model you have devised. That itself can be a very large challenge for some agents. They simply do not have the discipline for the process and hence do not take the required action. When you think about it, this leaves the market wide open for those people that can get organised and stay on track when it comes to their real estate business plan and opportunity network. It is a personal thing. It cannot be delegated.
  4. Tracking your efforts and your results will be important to getting traction in building market share. Understand the number of calls that you are making every day, the meetings you are creating, and the presentations underway for new listings. Seek to improve the numbers in a logical and consistent way. Commit time to the process in your diary so that you can reach new people with new property requirements.
  5. It should be said that the prospecting process usually involves a degree of discomfort and skill development. You can fast track the process through practice and role playing. You can merge those activities into your regular weekly sales team meeting.

A successful prospecting model in commercial real estate will take you quickly into the local property market and help with many new quality commercial listings. Consistency and focus will be required to stay on track and get the conversions that you require. The agents and brokers that control the listings, control the market.

Purchasing Commercial Real Estate – A Few Tips

Recent reports from a private real estate analyst called Real Capital Analytics indicate that region of South Florida actually ranks number 15 worldwide when it comes to the level of commercial real estate deals with regard to global property market transactions. This report is actually one of the first ones that have been done with regards to transactions around major metropolitan areas not just in the United States but also in the whole world.

The report has actually tracked global statistics and figures that totals to 1.04 billion US dollars in the field of office, industrial, retail, hotel, apartment and land sales in the year of 2007 alone. Furthermore, there are also information that indicates that more than 1 billion US dollars worth of transactions have been done for commercial property in 114 metropolitan areas in the same year.

With such good reports and astonishing figures, anyone can rightly assume that the Florida commercial real estate is something that countless numbers of investors are setting sights on because of its undeniable profitability. As a proof of this, the reports likewise indicate that foreign investments continue to grow in the most part of the state. Some observers in the Florida commercial real estate market even concludes that as time passes, it will become more and more profitable for people to invest in it. The favorable reports that the state continues to get and enjoy is a good indication that whatever place around the state you choose, you would still be getting back your investment in no time at all, as long as you know how to handle your business well since there is always a ready market for you if the business is really something hat people in Florida will either want or need.

If you are someone who is thinking about purchasing a Florida commercial real estate then be assured that the strategic location and the large number of residents and tourists in the place can expose your business in the local and international market. As more and more people get drawn to the many sights and attractions that the state has, they will then notice your business and you will have a ready market for those products or services that you hope to sell. Needless to say, there really is a big chance for you to earn big and earn quick if you will purchase a Florida commercial real estate because a lot of other business owners have already done that in the past.

On the other hand, if you are someone who is interested to be a Florida commercial real estate professional, then that could help you gain profits well too. Just get in touch with other people who are also involved in the same industry so you could get ideas what are the things that you should know and do so you could succeed in the market as well. In most cases, these professionals are very willing and eager to assist those who are only starting out in the filed.

Tips For Commercial Real Estate Investment

Commercial Real Estate Investment involves buying commercial properties that are bigger than a 4 unit apartment building. It is that real estate investment in which an estate is rented out or sold to make profit through rental income, interests, dividends, royalties, etc. but not for primary residence. It is better for the investors who are beginners in the field to avoid commercial real estate investment strategy. On the other hand, experience investor can go for for this kind of investment as the competition is much less. It is also the best choice asset class for building wealth, you may ask why? This is because there is a limited supply of land; no more land is being created! If you select a real estate with a land component in an area of increasing population and demand, the laws of supply and demand will work in your favour to increase the value of your investment. It provides better leverage than any other asset investment, with the ability to typically borrow at least 80% of the purchase price on house and land packages. 100% lends are possible in some circumstances. It physically exists and everybody needs a roof over their head. Wherever there are people, there will be demand for real estate. Given a healthy national economy, no deflation, an increasing population, or at least increasing demand for property in your chosen investment area, then your investment is liable to increase in value over time. You may have no control over the state of the economy, but I tell you, you can stack the chips in your favour by selecting the right type of property in the right area. Commercial deals take longer than other investments. They take longer to purchase, renovate, and get sold. This is not necessarily a bad thing, but something to keep in mind so that you don’t get impatient or rush into a bad decision.

Tips to help you succeed in commercial real estate investment

This investment is not a get rich quick scheme. It takes time as I said earlier to buy, renovate and sell, so you need to be patient. Think big and embark on big investment, buy properties at least 10units, remember that the more the unit you buy the cheaper they are per unit. Be prepared to spend a lot of money at first, fight the temptation to be discouraged by this, always have in mind that you can overcome this by borrowing from real estate investment trust or other source as I mentioned in one of my articles. Predictability is required in this investment because it follows a cycle which can be predicted, with predictability you can grow. It also requires consistent and persistent. Learn to analyse properties, know the worth before buying. Before now you suppose to know that commercial real estate is the business of marketing and finance, so you have to be master of finance, learn about mortgages and interest rate, loan programs that are out there. Also you need to be a skilled problem solver for anything going on in the business field in other to excel in this investment. Finally, remember that this business is not static, it changes in strategy and other aspects, so you have to be updated in the latest information, to do this you have to continue with your education/training on this.

Thing to look for when buying commercial real estate investment property

1. Solid Land Component; Aim for an investment where at least 30% of the purchase price is comprises of the land component. House and land, villa units, townhouses, and low apartment buildings can all fit in the bill. Land is the only limited resource, and that means value for you. If you purchase a unit in a high rise, not only will the value of the building depreciate over time, but what is to stop developers erecting more high-rises and diluting the supply in your market?

2. Stable or Increasing Population; Invest in an area with an increasing, or at least stable, population base. Avoid towns which are dependent on a single industry for the bulk of their employment. If the industry folds, so will the tenants.

3. Transport, Shops and Public Amenities; Invest in an area close to schools, shops, public transport and good public amenities such as a post office, library and park lands. These are the basic factors that make an area desirable to live in and will help to ensure continued demand for property in that area over the long time.

4. Affordable for an Average Worker; Select a median property in a median area, one which is affordable for the average workers. High end real estate is prone to vacancy and busts in recessionary times. Low end real estate is less desirable, can attract a lower quality of tenant, and cost you more in maintenance. Aim for a property that will rent for no more than 40% of the average household income for that area, preferably 30% of the household income.

5. Affordability for you, the investor; Try to invest in property that at least pays for itself, that is to say that the rental income will at least cover your mortgage repayments, insurance, maintenance, management fees, local rates and taxes. If this is not possible in your area, consider alternative areas. Otherwise you can still build wealth with negative geared property.

Above are few tips on how to succeed and buy a good investment properties. Just bear them in mind when buying commercial real estate properties and I bet you, you cash flow will boom.