Commercial Real Estate Investing
Basic Rules Of Commercial Real Estate Investing
Did you know that you can make a lot of money if you are adept at purchasing and selling commercial real estate? Unlike homes which typically sell for six figures, you can sell buildings and complexes that could be seven or eight figures. This could be a substantial payout. This is very true if you happen to be refurbishing buildings that you can flip for a profit. It’s not unheard of for people to make as much as $10 million or more from a single transaction. Therefore, if you would like to look into investing in a commercial real estate, and you have the funds to do so, this could become very profitable. Here are some of the rules of commercial real estate investing that you need to abide by if you want to become profitable and successful.
Never Buy The First Property You Find
The very first rule that you always need to follow is that you should never purchase the very first property that you find. This is not to say that you did not do a substantial amount of research, and conclude that this was the best deal for you. It simply states that even if you find one immediately, you need to find at least two or three more just to make sure you have found the best deal. This means more research which can be time-consuming.
However, you are looking at a major payout if you are able to purchase one of these properties at a low price and resell it for a substantial amount of money. Therefore, look for one property, and once you have found it, use these skills to find several others. Now let’s look at how you evaluate the properties that you are able to find.
How Do You Evaluate These Properties That You Would Like To Purchase?
If you want to evaluate these properties, you need to look at four separate factors. First of all, consider its history. You need to know how old it is, how many times it has been sold, and you need to look at any problems that the property has had over time.
Second, you need to consider the location of the property. If it is not in a good location, it’s probably not worth investing in. You need to know that you are going to have a steady stream of potential clients looking at it and eventually making the purchase.
Third, consider how much the renovation costs are going to be. If you are doing this for the money, you are obviously not purchasing a brand-new building in an attempt to flip it for a sizable profit. What you are looking for is a building that is in a relatively good area that needs a lot of work, and that you can refurbish and flip for a major profit.
Finally, you need to consider the viability of that particular building with what most people are looking for today. For example, if office buildings are in high demand, that’s what you should be looking for. If warehouses are also in demand, that’s another piece of a commercial real estate that might be a good idea. All of these things need to be considered simultaneously as you are evaluating properties to purchase.
Will It Take Long To Find The Best Properties To Buy?
If you want to get the best properties, you need to be patient. That’s really a rule that needs to be followed. If it takes you a couple months or even six months, once you find the right one, it’s going to pay for itself many times over. By simply being patient, and not purchasing a property out of desperation, you are going to make a lot of profit. Using these suggestions, and being patient at all times, you will eventually become profitable at this business model.
Now that you know the rules of commercial real estate investing, and why it is so important to be patient, you can start looking for these properties today. 3CRE helps you finding right property for investment. You may find that you are looking at several potential properties that you can purchase, one of which is going to make you the most money. As long as you are diligent, you will eventually purchase a piece of commercial property, in a fantastic area, that’s going to get you a substantial amount of cash. Just make sure that you understand the market, what people are looking for, and then also find people that can renovate these buildings at a discounted price. By having all of these different factors set up, you will never be surprised by what you find, and you will be able to refurbish any building that you purchase. The key is to be a professional in every aspect of this business of purchasing and flipping commercial real estate.
Also read for the Benefits Of Owning Commercial Real Estate Insurance.