Wondering how to get into commercial real estate?
Learn the do’s and don’ts of commercial real estate investing through immersing yourself in valuable real estate education
How to get into commercial real estate?
Are you eager to start an exciting journey in your life that also has the potential to give you a financially stable future? Commercial property investment can help you achieve this. However, you need to make smart investment decisions when investing in commercial properties to boost your cashflow potential.
That’s why, you need to immerse yourself in commercial property education to navigate the challenges of the commercial real estate market. This way, you can identify opportunities that can increase your passive income earnings from commercial property investing.
Once you are more familiar with the nitty and gritty of commercial property investment, you can explore commercial property investment opportunities to diversify your portfolio.
If you’re not sure where to start in your commercial real estate pursuits, here’s a quick rundown of how to get into commercial real estate in 5 steps
5 steps to get into commercial real estate investment
Learn as much as you can about commercial properties
Are you hesitant to invest in commercial properties after hearing horror stories of investors falling into common commercial real estate traps? You can avoid these mistakes by keeping yourself updated with the latest trends, insights and best practices of commercial real estate investing. There are many free resources that you can access, including online webinars, free downloadable eBooks, local commercial real estate investment groups and free seminars.
Know your purpose for investing
Before you dive into the more complicated steps of commercial real estate investing, you need to identify the reasons why you want to put your hard-earned money into commercial properties. This allows you to choose a commercial type that matches your purpose, which can maximise your passive income earning potential. Once you become more experienced with the investment process, you can scout for more property types to diversify your investment portfolio.
Set clear financial goals
Investing in commercial property can be lucrative, but without a clear direction or a long-term investment strategy, you might miss out on maximising your cashflow earning potential. So, ask yourself the following questions to clearly outline your financial goals. Are you looking for a sustainable source of income or ways to boost your capital growth? Or both? Then, decide your budget and capital you’re willing to invest in without taking too much risk.
Research the market extensively
Successful commercial property investment isn’t as simple as picking the first commercial property that appeals to you. You need to research the economic opportunities and conditions in its location, its accessibility and connectivity, zoning laws, vacancy rates, forecasted market conditions and other relevant factors. This will help you avoid the pitfalls of commercial property investing and identify investment hotspots that can boost your returns.
Do your due diligence and negotiate
Found a commercial property that aligns with your goal? You’re almost there. Just make sure to conduct a thorough inspection of the property. Identify potential risks, review financial records, and find ways to negotiate a deal that benefits you as a future owner of the property. It’s best to get in touch with a commercial buyer’s agent and a real estate attorney to review contractual matters to ensure that you’re getting the best commercial property deal.
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.
Want to explore more about what a commercial property buyer’s agency does? Get in touch with me.
FAQs
With commercial real estate, you have the potential to earn much higher rental yields. For example, the annual rental yield in Australia for commercial properties is 7-10% while residential tops out at 6%. Commercial properties also offer longer leases, more reliable tenants and multiple tax benefits.
While commercial real estate requires a sizable capital for down payments and property maintenance, the long-term returns outweigh its initial upfront costs. But, you can get started by leveraging your equity in your other investments or by accessing other financing options from lenders.
My website offers a collection of free resources for you to boost your commercial property investing knowledge. Click this link to access them.
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