With the right mix of perspective and patience, investing in commercial real estate can be a successful venture, even in a lagging economy. Most experts agree that research is your most valuable tool as a real estate investor, but beyond research, you will need a “big picture” perspective of your investing goals and of what is available on the market.
This perspective that’s needed includes thinking big from the offset. If you bother with going through all the necessary red tape in getting a commercial real estate loan, you should keep in mind the scope of what you intend to do. Dave Lindahl, real estate investment coach and author of Massive Passive Income Creator: Dave Lindahl’s Fast-Track System for Real Estate Profits, states, "It's no harder to manage 50 units than it is 10." Sometimes, thinking big might seem like a gamble, but if you crunch the numbers enough, you might find that it isn’t nearly the gamble it appears to be. In fact, thinking big might save you money in the long-run.
Patience is a necessary quality for a successful commercial real estate investor to have, as well. Commercial deals take longer than deals on single-family houses, and there are considerations concerning renovations that must meet additional commercial guidelines. For this reason, if you are investing in commercial real estate, consider doing so as a plan for retirement rather than a get rich quick scheme. Rarely do commercial real estate ventures earn a lot of cash on the front end; rather, they require patience and an understanding of the time and effort that will be involved in making your commercial real estate purchase a profitable one.
Another part of this patience is to understand the amount of time that you will spend looking for commercial properties, screening good deals from bad ones, and completing the offer process. While there is definitely a learning curve, and you learn as you go, these are generally processes that take considerable time on the front end.
No comments:
Post a Comment