Tips to Make Your Commercial Real Estate Investment Go Smoothly

Should i invest in real estate

Commercial realtors deal exclusively will business property. It has been estimated that the American commercial real estate industry is worth about $945 million, according to IBIS research. This makes investing in commercial property a valuable think to consider. If you are thinking, “should I invest in real estate?” Here are some tips to get you started.

Tips to Investing in Real Estate:

  1. Patience pays off. You know the saying, “Rome was not built in a day”? The same can be said for investing in a commercial real estate property. You want to take your time. You can buy a variety of different kinds of buildings. You can manage a 10 apartment building or buy office space. If you are not sure what kind of commercial real estate is right for you, talk to people who work in the business you are interested in owning. Get to know the business and see how you like it. You can talk to several people. In fact, really take your time with thus decision. It is a big purchase.
  2. Be prepared for it to take some time. Buying commercial real estate is not like buying a home. The process takes a lot longer. Expect this going in and it will bother you less when you are going through it. There is also a learning curve with commercial real estate, as with everything else in life. You may be surprised about how complicated the process can be.
  3. Consider bigger property. If you decide to buy a housing building or office space, it does not take a lot more work to manage more property. You will also see a higher return on your investment. This is because you will get more in the rents you charge your tenants.
  4. Expect to pay good money for your due diligence. You have to do your research and spend some money on your due diligence. This is a critically important step. If you scrimp here, it will cost you more later. Any time and money you spend making sure you have the right property and terms for your financing, you will get back later.
  5. Seek out advice from experts. If you are new to commercial real estate, talking to some established real estate partners is your best starting point. They can help guide you through the process and navigate the terrain. In commercial real estate your relationships can make all of the difference in the world. Developing good relationships with partners and lenders can help more the process alone and just makes good business sense.
  6. Get good financing. That seems like a no brainer but getting the right financing can make all the difference in your commercial real estate deals. Your town or city may have funding for entrepreneurs or you may qualify for funding from the Small Business Administration. They cannot say yes if you do not ask.
  7. Consider taking on a partner. No one person can always finance all of their commercial real estate deals. That is where partners come in. They can provide funding themselves or have access to funding sources. They can also help with the stress of running a business, which can be very taxing if you take it all on yourself. Having a partner to vent with can ease your stress level at least a little.
  8. When you start in commercial real estate, you will have a lot of questions. It is imperative that you know where to go to them answered. You need someone to be totally honest with you even when you do not want them to be. If you cannot hear that a business deal might not work out the way you want it to, maybe this is not an investment for you. You need brutal honesty from the experts you talk to.

Commercial real estate investors make their money from profits from their property, rental fees, parking fees and tax credits. These business can be residential property, office space, restaurants, retail stores, or multi-family housing units. You really are only limited by your imagination. When you ask your self, “Should I invest in property?” Consider what kind of property you would enjoy managing and then check out the area market.

Should I Invest in Property? Here’s How REITs Can Give You the Financial Independence You Deserve

Brian l katz

As you grow older, it’s important to start asking yourself a few tough questions about your personal finances. Should I invest in real estate? Should I invest in property on a commercial level? Am I too old to start investing?

If “should I invest in property?” is a question you’ve asked, you are on the right track to financial independence. Specifically, commercial real estate property is one of the most fool-proof investments in this current market. However, you need professional help to fully capitalize on these investments. An REIT (real estate investment trust) is a company that owns money-generating properties. Once you learn how to invest in a REIT, you’ll quickly find that investing is not as daunting as you thought.

Before you invest even one cent, you should know the basics of REITs. Here’s how commercial real estate can provide you with the financial dependence you deserve:

  • Identify lucrative properties. According to IBIS World research, the commercial real estate industry is worth approximately $945 billion U.S. dollars in the U.S. alone. There are few (if any) other markets producing this type of revenue on an annual basis, and there will always be a demand for high-quality commercial properties in the U.S.
  • Manage risks accordingly. Finding an REIT is important because it will allow you to identify a “boom” from a “bust.” Real estate partners help investors like you evaluate the risks involved with purchasing commercial properties, in addition to analyzing the costs you will incur to maintain the property.
  • Obtain a consistent cash flow. Commercial real estate investment typically allows for a consistent cash inflow due to the influx of rental fees, vending fees, parking pees, tax benefits, and other sources of revenue. If you’re looking for a long-term investment, you need to start investing in commercial property.

After seeking help from a qualified expert, your question will change from “should I invest in property?” to “which property will net the biggest profit?” Once you’re at this point, the rest is smooth-sailing. Find an experienced REIT and start making money on your own accord.

The Commercial Real Estate Industry by the Numbers

Douglas fleit

The 2008 Recession really took a toll on the American real estate market, and it’s taken a long time for both residential and commercial real estate values to look healthy again. And considering that an estimated 2 million Americans are employed by residential and commercial real estate companies, it’s definitely a good thing that the industry is on the upswing.

Don’t believe that the market is really in a good place? Take a look at the following statistics:

5.09 million: The number of house sales that occurred in 2013. The increase in sales between 2012 and 2013 was around 9.1% — that’s a big increase for just one year!

253%: The increase, between 2009 and 2013, of people who used search engines (like Google) to make inquiries about the real estate market.

$22.8 billion: The amount of U.S. real estate properties that foreign commercial real estate companies bought between January and August of 2013. That’s right — investors all over the world have recognized that property values in the U.S. are going up. This really isn’t surprising, considering that experts predict employment in the U.S. to rise by about 10% between 2012 and 2022; when people have steady jobs and steady incomes, they’re more likely to make long-term investments in the real estate market.

Of course, it should be noted that the real estate industry is always a bit of a roller coaster; one good year does not ensure the success of the following year. But when trends look healthier overall, consumers and investors alike gain more confidence, and the market is able to stabilize.

San Antonio Area Experiencing Commercial Real Estate Market Boom

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According to the latest figures being released by Integra Realty Resources, San Antonio and the metro area are experiencing a very strong local commercial real estate market. The news is being received positively by those interested in ensuring the economic future of San Antonio.

Even though the nation, as a whole, is experiencing lower demand for commercial real estate, it seems that demand in San Antonio will continue to grow. The growth is even spreading to neighboring cities of Pleasanton and Boerne, which, in the past, many in the industry labeled as “too small” and said they would not be able to attract sufficient investment capital.

According to Martyn Glen, the Senior Managing Director of the San Antonio Office of IRR, there’s an obvious reason that commercial real estate is booming in San Antonio — the city’s economy is doing well, and commercial real estate developers will follow the money trail left by consumers with full wallets. “We have a low unemployment rate, lower than the state,” he explains. “And people here have good ideas of education, as is shown by the large number of very high quality colleges in this area.”

There are other contributing factors, of course. Glen thinks that hotel construction downtown will likely receive a boost after the Tobin Center for the Performing Arts opens this September, and the victory the San Antonio Spurs had in June helped to capture the eye of investors from other cities.

Additionally, the Eagle Ford Shale has helped to stir a lot of local real estate interest throughout the San Antonio area. “It brought about $60 billion into the economy in 2013, it has increased population, and led to an increase in the work force,” he explains, and says that it is likely to inspire more demand for housing and construction for several more years at least.