Lead Dog's philosophy for commercial real estate is straight forward.
- Buy property that needs to be remodeled but is structurally sound. This allows for more upgrades in the property.
- Do not take on any partners. The decision making process is easier if you have to make a hard call. Just do the right thing whether or not it is the best financial decision personally.
- Invest in the property as if you were going to hold it for the rest of your life. If you do it right the first time, it will be cheaper in the long run.
- Lease the property at below market rates. Tenants need to be profitable to stay in business.
- Treat the tenants as you would expect to be treated. The will do the same for you.
For this approach to be successful, Lead Dogs need three promises from the individuals who lease property:
- To treat the property as if they owned it. This helps keep the property in the best condition. It also reduces ongoing costs.
- To communicate any problems quickly. If one exists, then it is better to find out and deal with it immediately.
- To pay their rent on time. This ensures a steady stream of revenue.