When people first start to get involved with real-estate, it is often when buying a single-family house. However, many people overlook the benefits of investing in commercial real estate either in their area or across the country. There are plenty of reasons why you should get involved in commercial real estate – from making profits to helping an area develop exponentially in a positive way. Regardless of how big or small your investment is, here are a few tips that will help you reach more success as you explore the world of commercial real estate:
The first step when it comes to investing in commercial real estate is to think big, especially if you are getting involved with commercial financing. It’s important to note that the more units you buy, the cheaper they will be per unit. Most commercial real estate investors recommend buying properties that have at least 10 units
Next, remember to take your time. Unlike investing in a single-family house for the first time, commercial real estate deals take much longer to purchase, renovate, and sell. Try not to rush through this process, as you will be more prone to making investment mistakes if you do so. An article published by Nu Wire Investor suggests to “think of commercial deals as big bonuses or your retirement vehicle, not a way to create quick cash to pay the bills,” (10 Tips for Investing in Commercial Real Estate).
While we’re on the subject of time, be prepared to spend a lot of your spare time focused on your commercial real estate investment, especially if you are new to the field. Houses all tend to be very similar, so if you’ve gone through a few processes of buying and selling residential real estate, you’ve probably noticed how quickly things get done your second and third time buying and selling. This is not true with commercial real estate. It will take the most time at the beginning, when you are deciphering between deals and making offers – just make sure you stick it out and know that things will get easier as time moves on.
Remember, investing in commercial real estate is a learning curve and a time commitment, so give yourself some slack if you think things are not going the way you planned. For more information about investing in commercial real estate, read Nu Wire Investor’s article here.
Filed Under: Commercial Real Estate, Gary Richetelli Tagged With: Commercial Development Company, Connecticut, Gary Richetelli, New Haven County, Orange, Property Management, Real Estate