Make sure to follow these first steps to purchase your first commercial real estate investment property.
Educate Yourself on the Commercial Real Estate Industry
There are many avenues you can take in commercial real estate investing. You will want to narrow your focus to create the best possible strategy. Joining an investment group is a great way to get an in-depth look at how other investors have succeeded. Why reinvent the wheel if you don’t have to?
Books, podcasts, and online videos are other great resources to learn the basics of the commercial real estate industry.
Choose a Property Type
Now that you have a general understanding of commercial real estate investing, you should consider your property options. There are five main types of properties in commercial real estate:
- Retail – Shopping malls, restaurants, and grocery stores.
- Office – Smaller commercially zoned spaces to multi-floor office buildings.
- Industrial – Receiving warehouses and distribution centers.
- Multifamily – Large apartment complexes to a single duplex.
- Hospitality – Short-term rentals, hotels, and bed and breakfasts.
Pick the real estate category that interests you and fits your lifestyle.
Find the Right Real Estate Partners
Choose a broker that has experience in the property type you picked. Your broker will be able to explain the ins and outs of your local market and what to expect in the purchasing process. You will also want to find a commercial real estate attorney, go-to contractors, a commercial lender, and perhaps a property manager—Your broker will likely have recommendations for these.
Know the Math
Make sure you can quickly and easily run the numbers in a spreadsheet to determine the quality of the investment. Your new real estate partners will assist in
your calculations, but you want to be knowledgeable in rehab costs, projected rents, vacancy rates, and return on investment.
Commercial real estate can be intimidating, but you can guarantee success by taking the proper steps and choosing the right team. Contact Steve at WeBrokerCORealEstate or 720-600-9513 to discuss any of your commercial real estate needs in Longmont, CO and our neighboring communities.
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