You don’t only have to invest in residential real estate if you’re trying to make money! You can also see impressive returns from commercial real estate if you know your way around. A commercial property can be any of the following:
- A retail building
- A warehouse
- An apartment building
- An office space
- A “mixed use” building
- An industrial building
There are several benefits of investing in commercial real estate. For your ease, New England Commercial Brokerage is here to elaborate on some helpful ways you can make money in the industry!
1. Find a Stellar Property
This might sound like basic advice, but it’s also one of the most common suggestions investors ignore. Most of your success and revenue from a commercial property will depend on the initial deal you’re able to strike. It’s easy to get bluffed by overpaying for a property or miss some detrimental damages that require costly repairs.
Commercial real estate buildings have specific problems that require expertise and can cost a lot of money to fix. Issues with the foundation of the building, the electrical wiring, the roof, mold, and other problems can lead to costs that will reduce your annual revenue from your investment.
2. Maintain the Building
More than a residential real estate building, a commercial real estate building sees a lot more wear and tear. But if you regularly maintain the building and keep it in tip top shape, revenue will stay sky high! Unless you plan to stay close to the building and continuously check it for wear and tear, you should consider hiring a property manager who will have contacts in several maintenance companies.
Their routine checks will take a lot of the stress away. However, if you can’t afford one, make sure you’re in contact with renovation companies!
3. Knowing When to Sell
Several commercial real estate investors hold on to a property for years. They collect the return and enjoy the benefits of the long lasting passive income. On the other hand, some investors like to buy and sell and make a profit from the fluctuations of the price. If you’re one of these, it’s imperative you have an in-depth understanding of how the market will change when you’re trying to make money by selling.
In this scenario, you’re going to be successful if you spend a good amount of time evaluating the market and find a time when the economy is going on an upward spiral. When the prices rise, sell the property and enjoy the immediate profit. Seasoned investors usually sell within five years, but this is a risky tactic to follow!
If you’re entering the commercial real estate market, you’ll be glad to know that you have an exciting future ahead of you. But don’t let the profits deceive you! There are several ways you can make money if you know your way around the market. New England Commercial Brokerage can help you get a stronger grip on the market in a short time.
As of now, we are licensed in:
We use cooperative brokers in places where we are not licensed to stay in compliance.
Call us today on 860-648-1600 to get started!