Get into the Game: Commercial Real Estate in Tulsa
Table of Contents:
Join the Winning Team: Make Industry Connections
Scoring Big: Finding Lucrative Real Estate Opportunities
Playing it Safe: Getting Clear on Risks
Walk it Off: Building Resilience
Your Competitive Edge: TEDC Creative Capital
Are you interested in passive income that creates more time freedom or contributes to your generational wealth goals? Maybe you’re a business owner ready to grow or transition from renting space to owning your commercial building. Perhaps you’re curious about how to leave the nine-to-five rat race behind and level up with an investment property.
Whatever your motivation, investing in commercial real estate in Tulsa might be the answer. TEDC Creative Capital offers financial and educational resources to help you make your first move.
Join the Winning Team: Making Industry Connections
If you want to enter the world of commercial real estate in Tulsa, building connections and relationships is the first, and likely one of the most important, keys to success. Relationships open opportunities you can’t find with an online search and allow you to learn from those with experience. You may also find potential partners and mentors along the way.
Join Organizations & Enroll in Courses
You can start getting connected by finding industry-specific groups and meet-ups to join the in-crowd. Groups like the Tulsa Real Estate Investors Association hold regular gatherings and host guest speakers with expertise who can help you learn strategies, secrets and ideas you don’t even know you’re missing.
Events like these and those held by non-traditional lenders like TEDC Creative Capital are great ways to network with other professionals. These organizations provide opportunities to learn about the latest trends and challenges to build your own knowledge base.
Befriend Local Brokers
Another essential aspect of building connections is contacting commercial real estate brokers regularly. Brokers are valuable for identifying opportunities and staying current on market trends. Plus, some brokers are interested in investing but not looking to operate or manage a property, so partnering on a project might be a lucrative avenue for you both. Building relationships with professionals who are experienced, knowledgeable and already in this space could help immensely with your commercial real estate investment goals.
Collaborate with Contractors
General contractors are another group of professionals you’ll likely need to call upon many times as a real estate investor. Finding a general contractor you can trust to give sound advice when tackling projects can make a massive difference in the profitability of any property investment.
Build a Diverse Network
Like any investment portfolio, diversity is recommended for optimal performance. Your professional network is no different. Partnering with someone with a different skill set, background, or frame of reference can help you learn about opportunities you haven’t considered or even provide partnership opportunities you’ve yet to entertain.
Invest in a Stronger, More Defined Online Presence
Another great way to build professional connections is by being vocal about your interests, research and successes online. LinkedIn is an outstanding platform for connecting with others in the industry while learning from their content and conversations. By sharing your thoughts and engaging with others, you can attract insightful discussions, mentors, and opportunities, including off-market deals.
Sign up for Newsletters
Real estate being the fast-paced and ever-changing industry that it is, staying informed is critical for spotting entrepreneurial opportunities. Subscribe to newsletters from organizations that keep you informed on the best strategies for the Tulsa market.
Partner with a Pro: Get a Mentor
Having a mentor, or even several mentors, is invaluable regardless of industry, and commercial real estate is no exception. Mentors provide direction and support and help you navigate new challenges. You can find mentors by reaching out through social media and by building relationships through local meet-ups.
When approaching a prospective mentor, it’s important to bring something to the table in exchange for their time and expertise. As a mentee, you might share resources like podcasts or blogs you’ve discovered in your private research, make introductions to other professionals in your network or perhaps treat your mentor to lunch to thank them for their guidance.
Scoring Big: Finding Lucrative Real Estate Opportunities
Investing in commercial real estate in Tulsa can be a great opportunity to build wealth. To give it your best shot, it’s important to understand the different asset types and strategies available for entering the world of commercial real estate investment to make the most of your time and money.
Choose Your Commercial Property Niche
Finding a niche in this industry can fast-track your success. There are several types of commercial real estate property, including industrial, multi-family, office space, retail and even self-storage properties. Since each type of asset presents unique challenges, focusing on one area means you don’t have to reinvent the wheel for every project.
You can research the benefits, financial obligations, time requirements and market for each type of commercial property to find the best fit for you. Choosing a focus will help you set your goals, identify the best mentors and build relationships with lenders that specialize in that type of property.
Look for the Potential
To evaluate prospective commercial properties, it’s essential to understand their classification as Class A, B, or C. Class A properties are top-quality and located in prime areas, while Class C properties usually need significant work or may be in less desirable locations.
When assessing a property, it’s crucial to do your homework and think creatively. A property that seems unappealing at first glance can still be an outstanding investment if it’s located near popular national brands, busy intersections, or the Tulsa Bus Rapid Transit route.
A perfect example of why not to judge a book by its cover; with proper management and investment, even seemingly unimpressive properties can offer great returns. By understanding your potential tenants’ or customers’ needs and thinking creatively, you explore fresh possibilities for a potential asset.
Playing it Safe: Getting Clear on Risks
If you’re investing in commercial real estate, you should talk through the risks with at least one or two trusted professionals with experience in real estate and commercial lending. They can help you think through various potential problems and scenarios to better prepare yourself for what might arise.
Consider the Possible Variables
What if your tenants have issues paying rent as many businesses did during the Covid-19 pandemic? What if occupancy rates are lower than expected? What if there was some kind of natural disaster that affected business and/or inventory? Can you expect to have issues insuring the building? Questions like these and many more will help you understand where you may encounter roadblocks in purchasing or managing a property.
Closely Evaluate the Potential Costs
If you’re the type of person who sees the world through rose-colored glasses when investing in commercial real estate, you’ve got to take them off to see your situation clearly. Although an affordable opportunity can seem exciting, it’s crucial to consider all of the factors. Foundation or roofing issues, outdated plumbing, necessary ADA compliance renovations, asbestos and structural concerns all have to be considered closely – especially in older buildings.
Cosmetic repairs can be an easy fix, but if continuous or extensive issues are forecasted, you have to consider if your expected gross income justifies moving forward with the project. The last thing you want in your first real estate investment is to find you’ve purchased a money pit.
Get to Know Your Lender
If you’re using a bank or even a non-traditional lender; you should always ask if they service their own loans and, if not – who you’ll need to contact if there’s an issue. It’s common for loans to be sold between financial institutions, which means the entity that originated your loan may not be the party to whom you make payments.
If your financial institution services its own loans, it can be more flexible with the terms and can make contacting your lender much simpler. It can also make a big difference if you have problems with payments or need help refinancing your property.
Treat Your Tenants Fairly
To build a successful business with commercial property investments, treat your tenants fairly and try to acquiesce to their requests whenever possible. Your reputation matters, and word travels fast. Commercial tenants are usually low-maintenance compared to residential tenants and are generally committed to staying in place for extended periods. However, it may be prudent to request an extension of their lease term in exchange for property alterations or improvements. Finding dependable tenants and treating them well means you’re less likely to deal with vacancies and damaged property, which leads to a more favorable bottom line.
Walk it Off: Building Resilience
Vince Lombardi once said, “It’s not whether you get knocked down; it’s whether you get back up.” When investing, you can expect to get hit with unfavorable circumstances a few times along the way. One of the essential traits for success in commercial real estate is resilience. There will be times when you face setbacks, but the ability to bounce back separates successful investors from those who drop out of the race.
Expect Obstacles
It’s important to remember that transactions in real estate are rarely smooth. There may be bumps along the way, including funding rejections or unexpected issues arising with an inspection during the purchasing process. However, not taking your eye off the ball is essential to reaching your financial goals. Successful real estate investors do not necessarily avoid setbacks but can rebound and keep going. Not every investment is a winner.
Keep your Eye on the Ball
Your resilience when facing new challenges in this industry can be supported by having a solid support system. It may also come from having a deep understanding of how your persistence can positively affect your community and your family well into the future. Ultimately, the key to resilience in real estate is to maintain an optimistic attitude, a willingness to learn and a strong sense of purpose.
Your Competitive Edge: TEDC Creative Capital
Commercial real estate in Tulsa can be a lucrative investment opportunity, but it often requires significant capital to get started. If you don’t have the funds available upfront, seeking financing from traditional banks and credit unions can be challenging. However, other options are available from non-traditional lenders like TEDC Creative Capital.
Your Tulsa Non-Traditional Lender
Our Tulsa-based non-profit organization provides financing to small businesses and entrepreneurs who face obstacles when accessing capital through traditional lenders. We offer a range of funding options tailored to each borrower’s unique needs.
Education for Entrepreneurial Success
In addition to financing, TEDC Creative Capital provides educational services to support small businesses and investors. These include several cohort programs and workshops to aid in developing entrepreneurs throughout Tulsa and Oklahoma while informing potential borrowers about available funding options.
Learn more about TEDC Creative Capital
If you’re considering investing in commercial real estate in Tulsa but don’t have the capital to get started, it’s worth exploring the programs available through TEDC Creative Capital. We provide education and resources to help potential real estate developers pursue their goals to reach success in the Tulsa real estate market. Learn more about our lending options, educational programs and how we can help you get started by visiting our website today!
Thank You to our Sponsor, PartnerTulsa
PartnerTulsa is the City of Tulsa’s economic development authority that streamlines and strengthens Tulsa’s economic development efforts through the merging of the Mayor’s Office of Economic Development (MOED), Tulsa Industrial Authority (TIA), Tulsa Parking Authority (TPA), and Economic Development Commission (EDC) into a single, enhanced Public Trust.
Partner Tulsa (aka TAEO) is governed by a thirteen (13) member Board of Trustees and provides staffing for and oversees the operations of the Tulsa Development Authority (TDA). Visit our website for more information about PartnerTulsa.
