01 Jan SNOW REMOVAL an issue? Perhaps not the one you think!
In the Triangle snow removal may not always be top of mind but commercial real estate professionals have an obligation unlike any other; we must always be planning for the inevitable. Risk management and due diligence may represent the less glamorous activities but the Benjamin Franklin axiom that “an ounce of prevention is worth a pound of cure” is as true today as it was when Franklin made the quote. Although many use the quote when referring to health, Franklin actually was addressing fire safety. Franklin wrote this (courtesy of ushistory.org) under an assumed name. This rings just as true on snow or any peril me must guard against. As an owner, operator or user of commercial real estate we must dedicate adequate resources to this notion of due diligence. Many investors or users diligently examine investments at the outset but long term due diligence is far too often secondary. While often delegated to property managers either internally or externally, owners and operators should not neglect their due diligence to these tasks through regular reviews by the management or senior advisory team many problems can be entirely avoided or effectively managed. Neglect surely compounds even the most basic of problems. A minor water leak left unattended can cause excessive damage and expense. An absence of an effective snow or ice plan can create an equally excessive personal injury claim.
As a real estate professional, my job is to keep the transaction moving forward to closing, while perfectly aligning with the client’s goals. However, my concerns for my client lead to other such topics and I am always seeking to advise in protecting our client’s investments from acquisition through disposition.
As an exceptional relationship builder who understands networking is more than an introduction and the exchange of business cards, I establish and maintain effective dialogues with many other professionals including property managers, contractors, interior designers or other trades like plumbers or electricians, as well as the attorneys, architects, bankers or real estate brokers you might expect. Let’s not forget tax accountants or other financial advisors as a significant portion of our work is dedicated to commercial real estate investments. Therefore, we must coordinate with many of these individuals to ensure the best possible outcomes.
You may have gathered by now that this article is not so much about snow removal but about due diligence and how having the right team of advisors. Like with any sports teams, your real estate business ventures will only be good if that team is deep and full of skilled individuals capable of protecting your investments through the very processes due diligence entails and seeks to address. Risk management is not simply a check list to be completed and abandoned but an ongoing task to be reviewed with equal vigor each time. That review is also only as good as those doing it and perhaps the level of attention they give it. Hopefully you will consider this and find your team does an incredibly good job of it. However, if you find during your review holes in either on offense or defense give us an opportunity to help fill out the roster. You will not be disappointed as we take due diligence and risk management very serious.