Getting Started in Commerical Real Estate

Have you been interested in investing in commercial real estate, but you don’t know how to get started? We understand that diving into the commercial market can be daunting. But investing in commercial real estate can be an excellent way to build wealth. Here’s what you need to know about getting started in the commercial market. 

Know how much you can invest

The number one thing you need to do before you plunge into the commercial real estate market is to analyze your finances. How much money can you invest? Think about how you will make the investment. Will you pay with cash? Or will you try to get a loan so that you can increase the amount you have to invest? Contact lenders to find out what options are available to you, and make sure you understand the ins and outs of the financing process.

Learn about the commercial real estate market

Once you’ve determined how much you can invest, you should learn everything you can about the commercial market. Where would you like to invest? Do you want to stay close to home or invest in another location? There are also many sectors of commercial real estate, and you should research what sector is most appealing to you. These include multi-family, restaurants, retail, senior living, sports and entertainment, shopping centers, specialty properties, health care, office buildings, industrial, land, and development. 

Understand the benefits of investing in commercial real estate

Investing in commercial real estate has many benefits. These include:

• More income — When you invest in commercial real estate, you have higher income potential. Commercial properties typically offer a better return on investment than residential properties. They often have a lower vacancy rate and longer leases.
• Better cash flow — You can multiply your streams of income when you invest in commercial real estate. These properties usually have more units and the tenants take on more responsibilities like taxes, maintenance, and insurance costs.
• Limited hours — Unlike residential properties which require 24/7 oversight, most commercial real estate operates during regular business hours. It’s unlikely you’ll be fielding requests or other communications outside of working hours.

Know what mistakes to avoid

Just as important as knowing the market, it’s essential that you know what mistakes to avoid when you’re getting started in commercial real estate. These include:

• Not understanding the financial details of commercial real estate — Commercial real estate deals are not conducted the same way as residential deals. Make sure you understand the differences before jumping in.
• Not valuing the property correctly — Each commercial property must be evaluated for its unique features. Know what you’re buying and understand its unique value.
• Not knowing what you’re getting into — While you need to be decisive when it comes to real estate investing, don’t make decisions without doing your due diligence. Learn as much as you can about the property before you purchase it.

Work with the pros!

The number one thing you can do when getting started in commercial real estate is to work with a pro! If you’re ready to jump into the commercial market, then contact the experts at Agent Commercial or Agent inc. at 949-791-8160 or [email protected]. Let’s open your world to new possibilities!