Many people are investing in real estate these days. The entry point is usually a single-family dwelling whether to buy a property to flip it, simply resell it, or rent it out. The next level up in terms of cost and complexity is a CRE investment. That is investing in any commercial property designed to make money including retail stores, industrial warehouses, storage spaces, hotels, healthcare facilities, office buildings, restaurants, and more.
Reasons to Consider a CRE Investment
There are many reasons to consider a CRE investment including proven high-income potential and competition for properties are much lower than for residential real estate. There is less tenant turnover in this real estate category with fewer problematic tenants, and you can get significantly more help in maintaining a purchased property.
10 Tips for CRE Investment
Taking on the challenges of CRE investment is not a simple effort. It takes patience, good information, and plenty of capital. Consider these tips:
Consider your objectives and your financial and time capacity and think about how big you can go.
Commercial real estate takes time–more time than a single-family dwelling. So don’t rush into a decision.
If you are familiar with residential real estate, don’t simply consider apartments because they come with significant rental obligations. There may be a better fit for you.
Know that the startup process requires a lot of time in screening deals and making offers.
Learn the financial formulas of CRE investing.
Know how important relationships are in this investing space.
Secure good financing in advance.
Be prepared to lose some due diligence money. That will be better than getting tied into a bad deal.
Find good partners to help you build wealth.
Get assistance in answering tough questions.
Seek Expert Financing Assistance
Contact Sterling Capital Consulting, based in Mesa, AZ for a wide range of tailored financing solutions to help you achieve your investing and business dreams from commercial real estate to small business loans.