The majority of people that you ask for advice when it comes to where to invest your money will tell you that bricks and mortar are the way to go, very often however, these people have never actually invested anything and they often know little about the markets. Whilst real estate is a great place to invest your money, if you know nothing about it then you might as well go to a roulette table and place all of your cash on black. As with any type of investment it is crucial that you have an understanding of where your money is going. When it comes to real estate, one of the best ways of investing your money, especially if you are looking for a healthy return is in commercial real estate. Commercial real estate offers you a longer term return on your money and generally bigger profits than through residential buying. Before you start buying up office blocks however, here is a checklist for the preparations that you need to make.
A Good Broker
Having a good broker to make your negotiations and your deals for you is essential, you can begin investing on your own but unless you know exactly what you are doing then it is better left to the professionals. I use a company called Welfont to do my investments, they always find me exactly what I’m after and have made some great deals for me over the years, check out the Welfont reviews for some more testimonials. The choice of company is up to you but I would certainly recommend that you use a firm, they will save you time and ultimately money.
Budgeting for any investment needs to be done carefully but with commercial real estate it must be calculated perfectly down to the last cent. Unlike any other investments, commercial properties transactions require more money than just what you pay for a property. You need to consider due diligence costs and how much money you will need to spend once the property is yours along with considering tax implications. Buying damaged or disused property can be a great way of getting a good deal, naturally doing so will save money on the buy but will create more costs on construction work so ensure that your budget can be flexible should an opportunity like this present itself.
You must ensure that you have the patience for this type of investment before you start throwing your money about, investments can take a long time to find and you shouldn’t rush into anything through impatience. Equally, the deals themselves can take a long time to complete and waiting for them to be finalized can be frustrating. Even once you have your property it can take a long time to see a yield and you also need to be prepared to wait it out, it will be worth it though and once you start seeing a return on your investment, all of the waiting will be forgotten.