A New Way of Doing Business
When it comes to commercial real estate investing, many investors are not aware that there are two main types of real estate research and representation: buy-side and sell-side. In a nutshell, agents who work for investors produce buy-side research. Agents working exclusively for sellers, on the other hand, typically produce sell-side research.
Because the aims of buyers are different from those of sellers, the type of research that an investor receives should be buy-side research. Intuitively, you may think that both sets of analysis would be similar but this seemingly logical conclusion is not necessarily an accurate one.
A buyer’s primary aim is to successfully manage their commercial real estate investing to meet their financial objectives. Buy-side research focuses on which properties will meet the commercial real estate investing objectives of their clients. Buy-side research is helpful to investors because it identifies properties with long-term appreciation potential as well as identifying properties that may not perform as well over time. Particular expertise is used in the forecasting and underwriting of future cash flows and expenses. The research is generally independent and free from bias that might be caused trying to meet the commercial real estate investing needs of different client types.
The aims of most brokerage firms are sometimes compromised because they try to serve two different client bases with the same set of financial research, even though there may be conflicting interest.
Foundation Group Buyer’s Advantage
The conundrum investors face is that the sell-side research they have relatively easy access to may not be objective, but the buy-side research that may better suit their needs is unavailable to them. Foundation Group, however, provides a solution.
When you retain Foundation Group to manage the purchase process and analyze the data, you benefit from our independent buy-side analysis. We are able to provide sophisticated analysis that is not underwritten with a seller’s position.
By retaining Foundation Group to perform these commercial real estate investing services, you bring unparalleled experience to your side of the transaction and a level of comfort most investors tread forward without. And, since we credit our retainer fees against commissions, which are typically paid by the seller, the cost for the representation is often completely credited.
The Value of Independent Research
In today’s volatile economic climate, independent buy-side research is critical to effective decision-making. Contact us to discuss your commercial real estate investing goals and how our process can be put to work for you.