Tuesday, July 17, 2012

Tips for Finding a Commercial Real Estate Mentor


As we’ve previously stated commercial real estate is a growing market that has shown a lot of profitability.  With that being said, it is not a market that one can jump into blindsightedly.  A lot of people entering the world of commercial real estate need a mentor.  Here are a few tips to take into consideration when looking for a mentor.  

One of the main things to think about is the geographic location you are searching for.  It’s important to note that properties in Florida are going to offer a higher ROI than properties in Iowa.  Keep these thoughts in your mind when you are considering an investment. 

Another important thing to know is that you need to know the market.  If you are looking for a mentor, their job is not to teach you from ground up.  It’s imperative that you have some pre-existing knowledge in order for the mentor to elaborate and expand what you already know. 

When you think that you have found a worthwhile mentor have a sit down face-to-face chat with them.  A lot can come from an in person conversation.  Although the internet is great for communicating, meetings are the best way to let your mentor know that you are serious about investing.  

If you have a meeting set up with your mentor be sure to have high value questions to ask.  Sitting down and asking them to ‘tell me everything’ isn’t going to get you very far.  Research goes a long way in this field, and it will ensure that you and your mentor have a quality conversation that is productive.  

Keep in mind that mentoring isn’t something everyone wants to do.  Some people have the mindset of ‘oh I figured it out myself, they can too.’  Try and avoid these types of people, and don’t get discouraged when you run into this personality.  Keep learning and researching your market, and eventually you will find someone who is willing to help. 

Tuesday, July 3, 2012

The Advantages of Commercial Real Estate



Investing in real estate is a great way to put your money to work in this economy.  With the many different types of investments that are available, it has been proven time and time again that commercial real estate has an enormous amount of benefits.

Often times, commercial real estate leasing contracts are longer than those of residential.  Residential real estate leases are usually short, whereas the commercial properties typically have lease agreements from 5-10 years in duration.  Assuming the tenant(s) do not vacate or go out of business, this long term provides for stability in the investor’s portfolio.  Advertising and marketing costs are much lower in commercial real estate properties as well due to the lower turnover rate.  People often switch apartments within 1-3 years, however, businesses do not move as frequently.

Another advantage of commercial real estate is there is typically less maintenance responsibilities for the property.  Triple net lease agreements provide for all maintenance of the property be the responsibility of the tenant.  In residential real estate, it is usually the investor’s responsibility to take care of the property and any associated maintenance and/or repair work.

Commercial real estate investing is a profitable endeavor if you have the time and patience to put into it.  On the other hand, it can also be a very risky business if you have not done the proper research or sought the advice and assistance of a commercial real estate professional.