Investing in commercial real estate is no ‘get rich quick’
scheme. Investing requires a lot of
thought and planning. To ensure you
don’t waste your time and money in the commercial real estate world, take a
look at a few of these tips.
Be open minded
Just because it has the word commercial doesn’t mean that it needs to be secluded to apartment
blocks. There are plenty of properties
that fall under the commercial category. Think about investing in offices or
warehouses. Both of which can bring you
in a good chunk of cash if you invest wisely.
Shop savvy
Don’t just look for a good deal, look for the best deal. With the economy how it currently is, there
are plenty of deals out there that will satisfy your goals. Be patient, and keep up a continued
search. Once you find a property
negotiation is key. Your prospects will
rarely go as low as they are willing to go on the first offer. Investigate to see how much wiggle room you
have.
Lose the rose tinted
glasses
Be very critical of the property you are considering. Don’t allow for the good in the property to
over shine the bad. Take the time to
write down a pro/con sheet, and take it seriously! I can’t tell you the amount of times
investors overlook the negatives because they are awestruck with the property, price,
location, or architecture.
Go big or go home
If you have the financing, make your purchase worth your time. It’s the
overall property that is pricey, so why waste your time and money on something
that contains only a few units? If you
are already going through the trouble, try your best to find a property that is
large and that has many units that can be rented.
Investing in commercial real estate is becoming more
common. With hard work, and the right
amount of research, it’s probable that your ROI will make everything
worthwhile.
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