Thriving in the commercial real estate market is not a simple-casino-gambling kind of investment that anybody just gets up and decide to invest. This market deals with larger stakes, more money, and a huge risk. A single mistake could send you from the luxuries to the slums.
Since commercial real estate investment hinges on the risks, the right deals, and the gains (Return on Investment) let’s give you simple tips that can turn you into a commercial real estate investment monster.
Be an Investor, not a property collector
There’s a difference between investing and being a collector of commercial real estate. The good thing about investment is that your money that goes into a commercial property should yield a profit or income. The bad thing is that many dealers in the real estate market end up collecting property – they don’t invest because their return on investment is zero.
If you want to get a lot of gains on your real estate purchases, you need to put it to good use – lease it, rent, or sell it at a profit. That’s what makes you an investor. If your commercial property earns nothing, you should rethink of why you are in the market.
Every property comes with a lifespan
If you are in the real estate market this is one thing you should clearly understand: every property has a lifespan. Properties become dirty or corroded and need paint, they sometimes become completely wrecked that they need total renovation, they would need a new roof, and the wiring would need some replacement, including many other issues.
This means that you should craft a long-term objective or plan on how to keep your property in good shape – and at all times.
A single type investment at a time
If you are a commercial property investor you’ve probably been told that diversifying your portfolio helps – investing in apartments, retail shops, office spaces, and land. Well, that’s normally for the ‘wolfs’ in the game.
If you are new in the industry try investing in just a single one at a time. It’s always beneficial to be a master of one, and then go on to the other field if you want, than to be an average in all – nobody said they need an average-performing property anyway.
Don’t ignore environmental issues
Property owners can never avoid environmental issues – hazardous substances, waste disposal issues. These issues have pushed many property owners into tight, non-escapable corners. Many lose years of investments; others give everything up – enough is enough.
If you are real commercial property investor you should see environmental issues as part of your responsibility. You have to put in your best to fix such issues in order to save your property, yourself, and the environment. That makes you a real commercial property investor with guts to thriving in the industry.
Get yourself a personal mentor
Mentors are like teachers. They will watch you do whatever you are doing – homework, exam, exercise, and when things go wrong, they will come in and correct you. That way you become good at what you do as time goes on.
If you want to avoid big, future mistakes, you need a good mentor. Apart from helping you through the ‘rules of the game’ of commercial property investment, mentors equally correct your mistakes and draw your attention to due diligence issues you might have overlooked during investment.
Whether you get yourself a personal mentor, take care of environmental issues, or invest properly in commercial property rather than collecting them, you should try your best and practice these five tips and they will help you.