Earn positive cashflow from day one through smart commercial property investment decisions
Gain valuable insights from Australia’s leading commercial property expert on the best practices to follow when purchasing commercial real estate.
What you should know about commercial property investing
While the commercial real estate market offers a goldmine of opportunities to invest and generate positive cashflow, navigating it can be challenging, regardless of whether you’re a first-timer or an experienced investor.
This is because many factors can influence commercial property investment success, some of which are beyond human control, such as uncertain economic conditions, that affect the commercial real estate market.
So, to become a successful commercial property investor, you need to do due diligence on the entire investment process and follow best practices.
5 best practices of commercial property investing
Here are some best practices you should follow when investing in commercial properties that help you avoid common pitfalls and maximise your investment.
Study the commercial real estate market
To make good investment decisions, you need to understand the various factors that can influence your success. So, build a solid foundation of the commercial real estate market by researching the local economy, location, accessibility, vacancy rates, rental rates and zoning laws.
This will help you understand the risks and potential of commercial property and make the right decision to boost your returns.
Know your budget
Understanding if you can finance the property you want to buy is one of the most important steps of the investment process. Stretching your budget to afford a commercial property may be counterproductive as your passive income potential is lowered.
In addition, you need to consider the costs beyond the purchase price of a property, such as taxes, insurance, maintenance costs and potential hidden costs.
Conduct a thorough property inspection
It’s very important to look at the overall condition of the property before you purchase it. Some properties may have a broken HVAC system, peeling paint, a leaking ceiling and other issues that should be addressed by the seller before you purchase it.
Review if there are any potential financial or legal issues plaguing the property that could affect your cashflow after you buy and lease the property.
Carefully review your commercial property contract
Reviewing the terms and conditions of the contract is important to make sure you’re not liable for any disputes and legal issues down the line.
It’s best to get in touch with a legal expert to review your contract to identify any terms and conditions that put you in a tough spot such as being liable to fund for damages caused by the property. This will help you minimise risks and protect your investment.
Diversify your commercial property
It’s always a good idea to diversify your investments so you don’t have all your eggs in one basket. The same goes for commercial property investment. Once you secure your first property, invest in other commercial properties, such as industrial buildings or office spaces.
Just make sure to consider your potential earnings by factoring in tenant potential, appropriate rental rates and other costs.
Client success stories
Clint
Brisbane
Helen’s book is very easy to read and understand, all the goals and strategies you have to take to be successful investing in commercial property and the right deals you have to make
Luis
Sydney
This is an excellent book…clear and concise with an actionable plan to begin investing in commercial real estate. I would recommend this book to my friends and colleagues.
Jared
Perth
This book helps simplify the complexities of investing in commercial real estate. Craig’s concise wisdom will help you learn how to make real money.
FAQs
- Office spaces
- Industrial buildings (e.g. warehouses)
- Retail stores
- Hotel buildings
My website offers many free resources, including YouTube videos, eBooks, and podcasts which you can read and listen to for free to boost your knowledge of commercial property investment.
Head over to this link to access these free resources.
Consider investing your time and effort into checking out industry publications, joining real estate investment associations, attending real estate roadshows or conferences and enrolling in commercial property education courses and certifications to keep in touch with the latest industry insights, trends and best practices of commercial property investment.
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