Investing in commercial real estate is exciting. It brings many new possibilities and opportunities for the future. It is also overwhelming, especially if you have never done it before. Here are four tips to help you get started as smoothly as possible.
Know What You Want
Before you even begin looking at a property it is helpful to narrow down exactly what it is you’re looking for. This requires what you’re hoping to do with the property, and what sort of amenities, land, and location you’ll need. Write down as many details as possible while thinking of everything you need and want. During this time you should also ask yourself things like how much you’re willing to invest upfront, if you are willing to partner with someone, and how much work you are willing to put in on the property. The more you know at the beginning of the process the easier it will be to know when you’ve found the right property.
Visit Multiple Properties
Once you are ready to begin looking at listings, make sure you view many properties, even if you think you’ve found what you want on the first or second try. Consider all the many factors and write pros and cons lists for each one. Seeing many properties will help you get a feel for what things you need and what things you’re willing to go without.
If you’re a first-time investor, likely, you aren’t an expert on commercial real estate. Don’t try to go down this path alone. Hire people who know the industry and all the ins and outs of purchasing property (lawyers, accountants, realtors, etc.). The more experts you have in your corner, the less stress and work for you, and the smoother the process will be.
Even with hiring experts, it is good to have a basic understanding of what you’re getting into and the unique language involved. Educate yourself on the acronyms and terms that are commonly used, so you can effectively communicate with others. This will help you clearly state what you are looking for, as well as understand what services others are providing you with. It will save you money and time to have a good understanding of commercial real estate and everything it entails.
Whether you have invested in multiple properties or this is your first time, make sure you have a solid foundation to build on.