I recently ran across a number of commercial real estate related articles written by Brian E. Bell, an Australian real estate agent. I think the information he provides is factual and worthy of re-publishing on my website. This is the first of two article that address a few of the things a would-be commercial real estate investor should be aware of as he or she contemplates making a significant real estate investment. I hope you find it informative.
Many of the world’s top billionaires today found their fortune and success in real estate investments. They were able to grow their companies and their money substantially through their various property investments and land development project.
Real estate investments, whether commercial or residential, can really be the key to amassing fortune and wealth. Unfortunately, not all people will succeed in this cut-throat and highly volatile industry. However, with the right information, education, training and tips, interested and first time property investors can find success in this lucrative market.
Knowing and following certain tried-and-tested but not too popular commercial property investment tips can help first time investors find success in their first undertaking in the real estate business. These tips are shared by and vouched for by seasoned commercial real estate investors. Some of these helpful and effective investment tips are the following:
• Take your time with the whole commercial property investment process. Generally, commercial deals take longer than residential investments. This is because they take longer to purchase and get sold. You need to bear this important fact in mind so that you don’t get impatient or rush into a bad decision. As a general tip, consider commercial deals as big bonuses or your retirement vehicle and not a way to get quick regular cash to pay the bills.
• Go big. If you need commercial financing to buy a 5-unit apartment, which is already a hassle, go big and invest in properties with at least 10 units. Seasoned real estate consultants say that the more units you buy, the cheaper they are per unit. In time, you will also find that getting a bigger property with more units wouldn’t be as hard as managing a smaller one.
• Don’t immediately invest in an apartment. Consider the other types of commercial property as well, such as office buildings, industrial, mobile home parks, and land properties. Weigh the pros and cons of owning and managing all of these property types and choose your own niche based on whatever you think (and feel) will help you reach your personal goals, irrespective of your comfort zone.
• Lastly, find good financing in due time. Commercial loans are also different from residential loans. Many finance experts say that they are in some ways better. The down payments required usually have a higher percentage than loans on residential properties. This means you’ll have to put more down money for this investment. However, there is often no personal liability if a deal goes awry and you will find that banks or lending institutions are more lenient about letting you borrow the down payment money from someone else. But before making any offers, find out who the best lenders are in your area to use when buying commercial properties, since this will spell the big difference between qualifying for a loan or not.
Read more informative and useful articles about commercial real estate investment and management on http://www.perthcommercialproperty.com.au/.
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