This post is the second in a five-part series that examines best practices for hiring an investment sales broker.
Relationship-based brokerage is not transaction-driven, but rather offers an investor the opportunity to establish a more strategic relationship with an investment specialist who can provide counsel on opportunities to reposition assets for increased market value and greater returns. Unlike traditional broker-seller engagements, a relationship-based approach is designed for the long-term, with benefits to investors at every stage of the deal continuum.
Let’s talk strategy
A relationship-based approach to real estate investing allows firms like Northeast Private Client Group to proactively advise clients on how to best manage their investment real estate portfolio. For example, if an investor is looking for a multifamily investment and hopes to reposition and sell the investment in 3-5 years, careful market analysis coupled with “boots on the ground” experience can help the broker to identify the value-added properties best suited to meet the investor’s goals. It’s not just a matter of knowing what a building is worth – it’s also about providing the roadmap to adding value and maximizing profits for the investor.
Benefits for buyers and sellers
Relationship-based brokerage offers benefits for buyers and sellers alike. For buyers, it means building a rapport with an investment real estate advisor who can offer access to exclusive listings that best suit their needs and proactively alert them to new properties coming onto the market that may fit well with their objectives. By monitoring market trends – what property types are performing best in which submarkets – relationship-based brokerage firms can also help investors to seize timely opportunities in the real estate cycle. For example, if there is high demand for workforce-level multifamily housing, and a limited inventory of units, there may be an opportunity for investors to purchase an obsolete office or industrial property, convert it to multifamily and better tap into demand for desirable units in that location.
For sellers, building a relationship with an investment brokerage firm before going to market means gaining help with repositioning assets to achieve an optimal selling price. For example, increasing a building’s energy efficiency and ultimately lowering the operating costs can increase the Net Operating Income and make the property more valuable to an investor. As your strategic partner, relationship-based firms are adept at drilling down to understand the individual’s goals and concerns, and providing guidance to reposition assets, grow returns and maximize value.
Whether you are looking to buy, sell or exchange mid-market properties including mixed-use, multifamily, retail and office assets in Connecticut, Massachusetts and New York, the Northeast Private Client Group team is available to talk strategy. Contact us today.