Life as a real estate developer or entrepreneur can have its ups and downs. You must learn to think creatively to overcome problems as they arise. Thinking outside the box can lead to new opportunities where others see none.
Steven Taylor LA real estate developer saw an opportunity a few years back that on the surface seemed a simple transaction. He purchased a single tenant industrial building intending to continue renting it as is to the incumbent tenant.
Like many entrepreneurial plans, things then proceeded to go wrong. A few months later, the recession hit. His tenant went bankrupt.
A year passed before he could re-possess his industrial building and during that time, the rental market plummeted. He saw the once healthy market cut in half. Taylor took a deep breath and thought creatively. He saw that few industrial customers existed, but the recession had caused many businesses to cut budgets. Independent contractors needed a professional address from which to work. He renovated the property, transforming it from a single-tenant industrial property to a multi-tenant office complex with co-working and flex space.
The multiple tenants helped him quickly recover from the revenue loss of the year with no industrial tenant. The multiple units also let him restore the building to its pre-recession earning levels.
His example bears resemblance to many others within and without the Los Angeles Real Estate market. In Oklahoma, two California actresses and producers, Famke Janssen and Milla Jovovich, purchased a closed Oklahoma City public school when filming “Bringing Up Bobby,” to use as a film set. The pair refurbished the building and turned it into a movie production facility which continues to be used today.
Another example of renovating an existing building for new use also located in Oklahoma City is the once retail space Shepherd Mall. It’s commonly known that for many, physical retail has gone out of style. Most people shop online now. You could purchase retail space, though, and remake it into a call center and office space as investors did with Shepherd Mall.
Perhaps you lack the visionary skills but have the investment capital. Contact a real estate expert for help. A successful real estate investor consistently looks out for new partners and co-investors. You do not have to have the creative notion on your own. Real estate investment lends itself to partnership and co-investing. This process also lets the new investor dip their toe in the water of real estate without owning all of the risks.