Are you looking to break into the real estate game? If so, we wouldn’t blame you. There are tons of commercial property investment opportunities available and the real estate market is booming.
However, if this is your first commercial real estate investment, you might not know where to begin. Do you know how to invest in commercial property to mitigate your risks and maximize your earning potential?
If you’re feeling a bit lost, that’s okay. We can help. Keep reading for a complete guide to investing in commercial property.
Assess Your Finances
First and foremost, let’s talk about your commercial property investment budget. Do you have money in savings or do you need to apply for a loan? If you need a loan to pursue your investment property, do you know what your loan eligibility is?
Figure out where you stand financially to identify your maximum price point. Additionally, make sure you understand all the costs of property ownership, such as:
- Taxes (property and income)
- CAMs (common area maintenance fees)
- Utilities (gas, electricity, water, waste removal, etc.)
- Maintenance and repairs
- And more
It’s important to include these in your budgeting to avoid running into problems in the future. Additionally, consider affordability in the event that you struggle to find renters.
Work With a Realtor to Find the Right Property
Next, work with a realtor or property investor group to help you find the right commercial property investment based on your professional goals. Aside from your budget, you also need to consider the type of property you want to invest in. This includes deciding what role you want to take on as a property owner.
For example, do you want to have multiple rental units for which you collect monthly rent checks? This would be a fantastic way of increasing your monthly revenue through passive income. However, this also means becoming a landlord, dealing with tenants, making regular repairs, and learning about property management.
Alternatively, you could invest in a residential fixer-upper for a low price. Then, after making repairs, updates, and renovations, you could sell the property for a handsome profit. While this type of investing offers less commitment, it only provides a singular return on your investment.
To see what your options are, check out memphisinvestmentproperties.net to find available properties.
Team Up With a Property Management Team
Finally, it might be a good idea to work with a professional property management company to help you take care of your real estate investment. This is especially important if this is your first commercial property or if you don’t have time to properly manage the property.
A property management team can help you find renters, deal with tenants, collect payments, conduct maintenance and repairs, and more. We highly recommend finding property managers, at least until you learn the ropes.
Ready for Your First Commercial Property Investment?
If you’re ready to get your feet wet in the real estate pool, follow our guide for the best results. And remember, if this is your first commercial property investment, it’s okay to ask for help.
No one expects you to be an expert already. More importantly, working with professionals can help you make wise decisions and avoid costly mistakes.
For more tips on business, real estate, finance, or investing, don’t go anywhere. Check out some of our other blog articles to find more valuable information to help you succeed.