If you are even slightly interested in the field of real estate investment, then you would know that commercial properties are much more sought after than residential properties. Any real estate agent will tell you about the benefits. There is a relatively open playing field and abundant cash flow. Also, a larger number of good property managers are available and there is a bigger pay off expected from commercial real estate than a residential property.
There are a few pointers that will definitely help you out in closing a good commercial real estate investment. With just a little extra knowledge, you can make profit in any commercial deal.
A Plan of Action:
It is necessary that you map out a plan of action. You should have a clear idea about how you want to proceed and close out the deal. You should lay out how much money you are willing to invest and how many tenants you are expecting. Having a plan will definitely help you out in closing out on a good commercial real estate deal.
Insider Knowledge:
It is imperative that you have a sound knowledge about the market you are dealing with. You should consult experts and get the inside scoop on what would make a good deal. Understand clearly how a commercial property differs from a residential one. There are some basic differences. The simplest one is that you would definitely get more from multi-family dwellings than single-home residences. A commercial property will result in a much bigger cash flow for you.
Recognizing Good Deals:
A good real estate agent will have an eye for business and recognize the good deals when they see one. You should be able to assess the risks involved. Another important thing is to make sure there is an exit strategy.
Motivated Sellers:
It is always advisable to search the market and find sellers who are motivated. You should look for people who have some urgent reasons for selling. The advantage is that they will settle for a price that is less than the market value. It can help save some money for you.
Neighbourhood Farming:
You would do well to learn the art of ‘neighbourhood farming’. It is a good idea to do a survey of the neighbourhood and ask around. You should check out the houses and talk to house owners.
Commercial Real Estate Metrics:
There are some key metrics that you should have full understanding of when dealing in commercial real estate. It is good to read up on these terms and understand their details. Some of the rates are Cap Rate, Net Operating Income and Cash on Cash.
Approaches for Evaluating Properties:
You should always work hard to evaluate the properties and then make the choice. A good source would be the internet, real estate bird dogs and the classified ads. You should adapt accordingly and evaluate the best property deals.
You might also like
 |
 |
 |
 |
 |
People who liked this Post also read
Posted by Batool Shamim in Real Estate · 1 Comment
When it comes to commercial real estate investing, Obviously the best strategy is to “buy low” and “sell high”, the problem is the “selling high” part. What can investors expect in the near future regarding the commercial market?