The most beautiful property could be a part of the worst real estate investment you've ever made. Remember that commercial real estate investing is all about the deal, the terms, and the return on investment. Here are some tips for successful commercial real estate investing:
• Be an investor instead of an accumulator of commercial properties. The whole idea of making investments is to produce an income or a profit. So, if you buy a property that produces no income or profit, you really just acquired a property (instead of making an investment).
• Understand that every property has a lifetime. One of the biggest mistakes you can make as an investor is to ignore the fact that over time, you'll have to spend money on the upkeep of the building. The building may need a new roof, and the electrical system may need to be updated. Every building goes through these phases; some moreso than others. Make sure you have a long-term plan to handle such repairs.
• Focus on one investment type at a time. This is especially important when you're first starting out. You should focus on one type of investment: apartments, offices, retail, land, or whatever. Each deal needs and deserves your undivided attention. It's better to master one than be average at many. Who wants average-performing properties anyway?
• Consider environmental problems. A huge potential concern when owning commercial property is hazardous waste problems. Property owners have the primary responsibility of fixing such problems, even if the current property owner didn't cause them.
• Get a specialized Realtor®. Realtors® can save you from making huge mistakes, identify when you've missed due diligence items, and connect you to resources that you otherwise wouldn't have immediate access to.
Contact one of our Commercial Realtor® specialists to guide you through every step required to make a smart, solid and, more importantly, profitable Commercial Real Estate Investment.