When it comes to investing in commercial real estate, finding the right property that will reap the most lucrative rewards is the name of the game. Whether you are new to commercial real estate or have owned an income property in the past, there are ways to maximize your success and minimize your risk when playing the market.
Here are some tips:
1) There’s more to commercial real estate than residential apartments- Many people get into commercial investing and choose residential properties by default. While residential apartments can be great first time investments, other focus areas such as retail space, office space, and land can be some of the most rewarding properties to acquire.
2) Take your time- The commercial real estate transaction is usually a much longer process than the residential. It takes longer to locate, purchase, renovate and sell commercial properties, and because of this, investments should not be rushed at the risk of making bad decisions.
3) Be prepared to do your homework- Like in residential sales, it is important to cross all t’s and dot all i’s with the purchase of a commercial property. Be sure to get appraisals, property inspections, and any other documentation that may be required for the property’s use. Spending money on these different sub-services may be expensive, but will save you time and money in the long run when the deal goes through
4) Remember that every property has a life span- Many novice investors often make the mistake of thinking that once a property is acquired, they can sit back, collect the rent, and forget about it. Not so. Like any real estate purchase, every commercial property requires upkeep, maintenance and the occasional renovation or repair. To get the most out of your investment, always have a long-term plan in place to make sure you are prepared to handle all required property improvements.
5) Trust the opinion of a professional- Working with a mentor who has experience in the purchase and sale of commercial investment properties is a great place to start. Having someone who can answer the tough questions, provide insight about the market, and make sure you have not overlooked any details can save you lots of time and money.
If you are thinking of making a commercial real estate investment in the future, I’d love to be your mentor. With years of experience in the Greater Toronto Area, I have the expertise, knowledge and insight to help you make the best decisions to get the highest return on your investment. Feel free to contact me anytime for more information about the market in your area.
Stay tuned for my latest ideas, news and tips on real estate!