Are you ready to try Commercial Real Estate Investing? If so, we have you covered!
Below are the 10 Rules of Successful Commercial Real Estate Investing:
- Know yourself and your situation. Where would you like it to be located? How much time can you commit to the property? What skills and knowledge can you bring to the table? A little soul searching can go a long way when making these important decisions.
- Do your Due Diligence. Learn the ins and outs of Commercial Real Estate and conduct market research. The purpose of due diligence is to be able to assess if any property that you look at is a viable investment option.
- Learn some commercial real estate vocabulary. There’s a lot of vocabulary that will need to be learned in order to make working with people in the industry easier. Check it some important terms here.
- Know where you are in the real estate cycle. There are four parts to any real estate cycle: expansion, contraction, recession, and recovery. Knowing where you are in the cycle helps you make the right decisions at the correct time.
- Start visiting properties! Consider and tour multiple properties. Find the perfect “fit” for your personal situation.
- Find your team. You’ll most likely need to hire some experts to help you with some important steps.
- Financing help. To purchase the property, most people will need to get some financial help to be able to purchase the party.
- Don’t Overpay. Overpaying is common for new investors. Paying too much will lock up the property’s cash flow for a long time.
- Make an offer! Make sure to run everything by your lawyer. You lawyer will sign a letter of intent (LOI.) The LOI details the terms of the transaction. Have your lawyer clearly explain all details of the written agreements.
- Escrow. You and the seller will need to find an escrow officer who will be the neutral 3rd party overseeing the transaction. The escrow officer will make sure both parties are protected in the transaction.
