by Mark Polon, CCIM
1) Build your portfolio, not someone else’s.
When brokers represent investor clients, they spend a lot of time making their clients rich. Development projects and investment real estate assets allow you to build your own personal portfolio. When the proper analyses are applied, the potential upside and long-term returns on time invested are significantly greater for investors and developers than for brokers.
2) Assess your risk tolerance.
Think long and hard about the many factors that can impact the value and performance of a built or purchased asset over time. Development is riskiest of all investments. But potential developers can use tools such as STDB’s ArcGIS analysis to evaluate market feasibility and Tapestry Segmentation to forecast demand. Potential investors can run financial models to assess current income streams and ultimately determine an asset’s risk and sensitivity to changes in market fundamentals.