Lessons from a Commercial Real Estate Investor – Insights on Due Diligence and Building a Quality Team

Are you thinking of investing in commercial real estate? Look no further than Jeff Greenberg, a seasoned investor with over 12 years of experience in multi-family, student housing, and senior housing acquisitions. In a recent podcast episode, Jeff shared valuable insights on adding value to a property, ensuring sufficient funding, and conducting adequate due diligence.

One key lesson Jeff emphasized was the importance of having a quality team for inspections and identifying problems during due diligence. Jeff advised against relying solely on brokers for property inspections and instead recommended seeking verification from other sources. He also recommended spending money on quality inspectors to ensure that the property is thoroughly inspected.

Jeff also discussed the importance of having sufficient reserves to handle unexpected expenses, especially in the current market with variable interest rates. He suggested that investors should aim for fixed-rate loans and avoid variable loans unless they have a large reserve. Jeff’s experience in the multi-family space provides valuable insights for investors looking to enter this market.

Jeff’s transition from being an operator to a fund manager was another topic of discussion. He invests in deals with trusted sponsors and negotiates special terms for his fund, which is customizable, allowing investors to diversify their portfolio. Jeff emphasized the importance of having a quality team and conducting due diligence to ensure successful investments.

Jeff’s experience in commercial real estate provides valuable lessons for investors looking to enter this market. He advises learning from other people’s failures and seeking education through books, podcasts, and events. Jeff also stresses the importance of determination and perseverance in the commercial real estate business, which is a long-term investment. So, if you’re thinking of investing in commercial real estate, take a cue from Jeff and build a quality team, conduct thorough due diligence, and stay committed for the long haul.