Feb 22, 2022
In this weeks’ episode, I want to provide you with meaningful strategies and tips that you can start putting into practice from now on your business. I’ll share a document that I created called “The Investing Evaluation”; this document was based on business principles that I learnt from Charlie Munger and Keith Cunninghman. I’m going to focus on the ones I believe you will get a lot of value out. If you are interested in knowing what you should take into account when investing in commercial real estate, this episode is for you!
[00:01 - 02:00] Opening Segment
- An overview about the investing evaluation
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- A document created by Shane
- Learn from Charlie Munger and Keith Cunningham
- Business principles adapted to investing in commercial real estate
[02:00 - 12:05] 6 Questions to Ask Before Investing in Commercial Real Estate
- Can I understand the business predictably?
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- What are the reasons for demand?
- How certain am I that people will buy the product in the future?
- Does it look like the business has some kind of sustainable competitive advantage?
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- How confident am I that people will buy the service from me over someone else?
- How strong and sustainable is the advantage?
- Can I find able and honest management?
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- Why are people buying in real estate?
- What kind of property managers are you looking for?
- Is the price right?
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- Are you realistic about your expectations?
- Disprove or invert the deal? What can kill me in this business?
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- Have an outside perspective that could be from a coach or a mentor.
- What are the consequences if I’m wrong?
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- Are you putting personal guarantees?
- What is your reputation risk?
[12:06 - 13:49] Closing Segment
- Recap of the six questions: evaluate commercial real estate investments.
- Final thoughts.
- We will begin coaching sessions next month! If you are interested in my coaching and consulting program, please reach out to me through email at shane@shanemelanson.com or see below for my website link. I want to make sure to cater those interested, so please use the word “coaching” on the body or subject line.
- Don’t forget to connect with me and grab a hold of my free book through my website below.
Tweetable Quotes:
“The better you understand your tenants, the more likely you will be able to provide them space for them to lease or to purchase.” - Shane Melanson
“If you are new to the world of commercial real estate, expect, that you're maybe going to have to stretch on price over someone that has a long track record.”- Shane Melanson
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