Commercial Real Estate: Getting A Foothold
The world of commercial real estate is both exciting and lucrative, but getting started can seem rather daunting. Between all of the terminology, strategies, and advice, the whole field can get much more confusing than it really is. In order to give you a clearer picture of how to make a successful start in commercial real estate, we have put together this overview.
How Involved Do You Want To Be?
There are many aspects to real estate investments. Some people like the idea of owning a rental property or two to supplement their regular income. For others, fix and flip projects are exciting, and the prospect of hundreds of thousands of dollars in revenue is hard to pass up. Still others set their sights on building hotels and resorts, making commercial real estate a full-time career where properties generate profits without much upkeep. Decide on your level of comfort before diving in.
Most people do not start off in commercial real estate by purchasing an office high rise in the financial district of a large city, or by erecting a healthcare center. Most people purchase “fixer uppers” – houses which sell way below market value and could use a little work before they are ready to be sold or rented. From there, money generated from investments can be divided so that properties pay for themselves and place capital in the bank for future acquisitions.
Get To Know People
The world of commercial real estate is not an automated business that can be run solely from a computer screen. It pays to get out and talk to sellers, wholesalers, flippers, property managers and others. They are usually very open to questions and will give an insider’s view of the industry. The reason for this is because not all clients fit all sellers, and the real estate business works on a lot of referrals.
Finding The Right Commercial Real Estate Financing
Most real estate acquisitions are not made with personal funds. However, prohibitive bank requirements and processing time rule out traditional loans. Fortunately, there are commercial financing programs to fit every commercial real estate project. From conventional real estate loans for purchases, to bridge loans to cover the immediate cost of renovations, and other types of lending such as mezzanine financing for large projects, or FHA loans for multifamily properties – having access to the right financing makes starting a career in real estate much easier and (ultimately) profitable. If you would like to learn more about commercial real estate financing options, and launch your own CRE investment business, contact CounselPro Lending at 1-888-292-3322.