If you are involved in commercial real estate, it’s likely you have some lofty goals. This article looks at some strategies for making those goals a reality.
Know Your Goals
To succeed in commercial real estate, it is vital to know your goals. Clearly determine what kind of property you are after; for example, someone looking to invest in residential property will have a different path than someone who plans to rent to businesses. Additionally, be realistic about the money you have on hand and how much time you can put in to this venture.
Know Your Skills
Commercial real estate can be a complicated business, so you should fairly assess what skills you bring to the table. For example, if you have a contracting background, you might be able to do some of the work on a property yourself. Lacking that, however, and you will need to plan to hire specialized professionals for the work.
Expand Your Vocabulary
Though it is not necessary to have an encyclopedic knowledge of every aspect of commercial real estate, it will be very helpful to know the basic vocabulary of the field. This will make it easier to work with buyers, sellers, and other people involved in the process. This Forbes.com article is a helpful starting point for picking up terms.
Research Properties Carefully
It is a big decision to take the plunge and invest in a property, so it is important to research properties carefully. Tour many of them to find the best fit. When selecting properties, ask yourself questions like:
- How much work will this property need to get it in the proper shape?
- Are there any local zoning laws or regulations that will affect my use of this property?
- What taxes apply to this property?
- How much money does the property currently generate?
- Is the location good, undesirable, or somewhere in between?
Additionally, do not be afraid to ask other business owners and/or residents in the area questions for background.
For more tips on succeeding in your ventures, take a look at Safe Harbor Commercial Capital’s other blog posts.