There are a lot of million-dollar industries in the world right now, but what there aren’t a lot of are billion-dollar industries. However, commercial real estate investing is one of them. If you’re looking to get into an industry with billion-dollar potential, you need to know the ins and outs of what it takes to get started and maintain a competitive edge. With help from The REIG, we can teach you how to invest in commercial real estate by working with our team of experienced and knowledgeable brokers. Read our short guide to get started.
Know your property types
When it comes to investing in commercial properties, not all are created equally. You need to be familiar with the options you have available and how each aligns with your current and long-term goals. Before we get too far into properties, let’s review what’s available:
- Special purpose (These are buildings that cannot be converted to another use without a large capital investment. Cemeteries, amusement parks, swimming pools, sports arenas, and others fall into this category.)
Each has its unique pros and cons with investing and will require its work to manage and maintain. Your investment broker can help you weigh your options and find the best property to fit your goals.
Understand the market
Real estate is nothing if not fluid. Having an understanding of the current state of the market where you’re planning to invest is crucial to making the best decisions in regards to your money. Yes, you might be able to get into a commercial property at a basement-level price when the market is down, but if you don’t have confidence the property value will increase it’s not a good investment. Speak with a broker about the current state of the market in the county, city, and neighborhood where you’re thinking about putting your money.
It’s not uncommon for it to feel like banks and sellers are dragging their feet when it comes to completing a large-scale sale. This is simply these organizations covering all their bases and making sure they’re not taking on a larger risk than they can handle. This can cause delays in the buying process and make it feel like it’s taking longer than it should. When you work with a broker, you’ll have a line of communication with the lender and seller to verify that the process is continuing to move forward as planned.
Prepare your finances
If you’re buying a massive property, the seller is going to want to verify that you’re good for the money. The same goes for the bank if you’re planning to finance the sale. Have financial records available and ready to present to those who ask. Keep in mind that when you’re dealing with significant amounts of money, those involved are going to want to make sure you’re good for it. Your financial records can include your current debts, income, and your long-term financial plan. A broker will help you get prepared before you ever approach a seller with a proposal to buy.
Contact us to get started
If you still feel like investing in commercial real estate is still for you, get in touch with our team at The REIG. We’ll teach you how to invest in commercial real estate so you can start unlocking your billionaire potential. Contact us by calling 702-930-2619 or send a text message to 702-805-2720. You can also fill out our exclusive Investor’s Hot List form to find out about the investment opportunities we have available. We look forward to working with you and helping you find the best investment property for your portfolio.