Investing in commercial real estate can be quite a lucrative venture. But just as with any investment plan, you need to know how you can best be successful. While there is always a learning curve, especially at the beginning when you’re just starting to get your feet wet, you can always learn a few things to get you started on a path to commercial real estate investing success.
To Succeed in Commercial Real Estate Only Buy Bargains.
While your real estate agent may be taking you around to show plenty of office spaces, warehouse spaces, storefronts, and other commercial real estates, you need to know how to spot a bargain. After all, the agent is out to get a sale, but you are out to help build long-term passive income. This means you need to look for properties you know will help you do that.
The first step is to request a property valuation. This valuation will take into consideration the building itself, any upgrades that have been done, the effect of the surrounding areas, and more. This valuation will help you determine if you can make money with the property, but it will also tell you how much you stand to make. Take a look at this example: the average 400-square-foot office costs approximately $35 per square foot or $20,000 per year. Depending on the initial investment price, this can be a lucrative property indeed.
To Succeed in Commercial Real Estate Research Your Market.
Your market will be affected by many different things. If you want to specialize in renting out storefronts, then you will need to research what the average storefront rent is in your city, or within a particular part of your city. You’ll also need to research the kinds of businesses that are usually found in storefronts like the ones you will be investing in. This way, you can know whether they are a high-dollar or low-dollar industry and this can help you determine the rent you can reasonably charge for space. A comparative market analysis can give you all the details you need to make an informed decision about a property.
To Succeed in Commercial Real Estate Always Assess Your Risk.
When investing in commercial property you always need to be aware of the risks. This means staying up on real estate news in your region and even nationally, such as new regulations for purchasing or managing commercial investment properties. However, there are risks involved in many aspects of real estate investing. When considering a specific property, be sure to look at what the previous property valuations were. You will also want to get it inspected by a licensed inspector in your area so you will be made aware of any potential problems down the road.
To Succeed in Commercial Real Estate Patience is a Virtue.
If you’ve already dabbled in some residential real estate investing, such as apartment complexes or rented homes, you may be expecting a fairly short process from first viewing to receiving the keys. You might have this expectation after purchasing your own home at some point. However, commercial real estate is much different and there are a few more hoops to jump through. This can make the process take a bit longer. Keeping this in mind from the start can help prevent a lot of frustration later on.
Commercial real estate investing can create a constant supply of income well into the future. With some management skill, these properties will be easier to maintain and keep rented. However, it all starts with finding the right property, which should always be a bargain based on the property valuation.
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Attend our next meeting and transform your investing strategy.
It is a lot easier than you think to start investing in real estate. Whether you want to be a landlord, flip homes or simply invest in companies that invest in real estate, there are many ways to get a quality return on your original investment. Join SWFL REIA for more helpful tips on breaking into real estate investment!
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See you at a meeting soon!
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that they do not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
We look forward to meeting you at a meeting soon!
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