Leasing Lessons – 5 Tips For Success In Commercial Property Investment
Real estate investing is a great way to increase your wealth and ensure your retirement is financially sound. It’s possible to invest in both residential and commercial properties, though many people opt for one or the other, at least initially. Your choice will depend on what you hope to achieve and how much time and money you have to invest. For the highest returns, commercial real estate is your best bet. Of course, this does mean you’ll need to invest more money upfront. With so much at stake, it’s important to know what you’re doing. Should you decide to try your hand at commercial real estate investing, be sure to follow the tips outlined below:
Know When to Hold ‘Em and When to Fold ‘Em
The whole reason you invest in commercial real estate is to make a profit. To this end, you must develop an ability to track down properties with the biggest potential to make money. The ones that do so are worth holding onto long-term, making them valuable finds. Should you purchase a property that doesn’t live up to your earning expectations, it has to go. After all, you’re an investor – not an accumulator.
Have a Long-Term Plan
Every good investment will require some TLC sooner or later. Buildings need maintenance and upgrades, so you need to have a long-term plan in place to handle these needs. Whether it’s simply renovating outdated décor or replacing major systems, every property eventually needs attention. It’s up to you as the owner to decide if making the repairs and upgrades will be beneficial to your bottom line or not.
Focus on One Investment Type and Do It Well
There are many different types of commercial properties to invest in, including retail, office, apartments, industrial estates, and more. The key, especially when you’re starting out, is to invest in one type of commercial property and do it well. Remember – it’s better to be really good at investing in one type of property than to be so-so at investing in multiple types. If you don’t want your returns to be average, your investment strategy shouldn’t be either.
Find a Mentor
Commercial real estate investing isn’t for the faint of heart. It takes a lot of money and plenty of know-how to do it right. While learning from your mistakes is acceptable in other areas of life, mistakes in commercial real estate investment can be devastating. To help you get your bearings, it’s a good idea to find yourself a mentor. A mentor can help you see mistakes before they happen (because they’ve already been there and done that), make sure you’re doing your due diligence, and even connect you with resources you wouldn’t have otherwise been able to find.
Make Sure You’re Protected
Anytime you deal with commercial real estate, you have to be prepared for a lawsuit. You never know when someone will get hurt or be otherwise unsatisfied, and as the property owner, you’re held responsible. You need to talk with your attorney to make sure that your investments are protected, and your personal assets, as well. Investing in commercial real estate can give you the lavish lifestyle you’ve always dreamed of as well as a retirement free of financial woes. Risk is a big part of investing, so it’s crucial that you know what you’re doing. Use the tips outlined above to guide you in finding success in commercial real estate investing.