The following Q&A was completed as part of our conversational Commercial Real Estate FAQ Interview Series, we hope you find it helpful.
Investors should do their due diligence thoroughly, learning all there is to know about the project or property up front. Hiring professionals to assess different parts of the property allows you to get a full spectrum view of what that product really is all about. After getting to know the property, make sure there really is demand for the product you’re about to invest in.
Richard Wilson: What should investors know up front regarding real estate investing within the commercial real estate development project area? I know there’s unique risk, unique opportunities in this area, so what should a new investor know about getting involved here?
Chad Moss: I think like any deal you get into, you need to do your due diligence, you need to work with third party consultants and professionals that would advise you on, you know, the real estate purchase itself all the way to the actual building performer. That you will need help with contractors and real estate professionals to bring it to that point. And you really need to define demand, right? It’s the economics of the deal at the end of the day that that drive projects and is there a demand for the product you’re about to invest in.