Today I want to talk to you about presentation. There’s an interesting quote from Ray Kroc the founder of McDonald’s. He went and spoke to a group of MBA students and he asked them specifically what business they thought he was in. They said hamburger business, and he said absolutely not. He’s in the real estate business and the kids were just blown away as to how he could possibly be in the real estate business. But that is in fact where McDonald’s has earned their fortune. No two ways about it.
Presentation Is Key
As commercial real estate owners, you are not in the real estate investment business. You are in the presentation business. That’s right, you’re in the presentation business. All the value, all your return on income, all your return on investment, everything is dictated by the presentation of your property.
You want to maximize cash flow? How do you do that? By increasing your rents and having tenants come to you and rent space in your building. You’re gonna be able to do that if you’re building presents the best it possibly can in the market.
When you go to sell the property, how are you going to achieve maximum sale dollars for your property? Very simple. Make the property present meticulously. Nothing to pick apart when a buyer comes and takes a look at your property.
You want to maximize your ROI by refinancing and extracting as much capital as you can with the lender? How are you going to do that? Presentation. Make the property present awesomely. Give an appraiser a reason to value your property at the highest end of the market. Make banks covet your property such that they want to loan you the most advantageous terms possible.
It’s presentation, presentation, presentation. That’s what you need to be thinking about. That’s what you need to be focused on. And if you really want to maximize the value of your asset and your cash flow you will take the time to make sure your property is presenting in the best possible light.
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Should you have any questions about this article – or any commercial real estate matter – please feel free to contact me at [email protected] or call me at 508-635-6786.