For many, getting their Commercial Real Estate Venture Started can seem like a scary new world. On top of that, getting through any paperwork on real estate property might seem like a daunting task. Whatever the case maybe that has you on the fence with commercial real estate, here are four tips to help you breach the market with confidence.
Be an Insider
To be an investor, one must learn to think like an investor. For commercial property, know that it is valued on a different scale than residential property. On commercial property, the value is directly linked to the usable square footage. This is not the case for residentials. Keep in mind as you begin your investment: Commercial properties have longer leases, have a much bigger cash flow, and if you’re in a tight credit environment you might need to show at least 30% before you get a green light for a loan.
Plan Plan Plan
One of the first questions you should answer when you’re getting your Commercial Real Estate Venture Started is how much can you afford to pay. Use tools offered like mortgage calculators to get an idea what the total cost on your investment will be. Once you have a number evaluate if it is the right fit for you. The most important part of planning your investment is to ask yourself a lot of questions. How many tenants will you need? How long will it take to get them? How much can you expect to make?
Answering these questions will make your process a lot smoother towards the end.
Understand a Good Deal
Have an eye for a good deal. The best deals according to real estate pros are the ones where you know you can walk away from. Pay close attention to detail. Look for damages that require repair, know how to assess risk, and always have your financial goal in mind.
Through all the tips and tricks to help you score a good commercial investment, the bottom line to getting a good deal is by networking. Getting to know people in the industry will make shopping around a lot easier. Building relationships will get you, mentors, first looks at properties, and a lot of business.
Follow these steps and get your Commercial Real Estate Venture Started painlessly