Investing in Commercial Real Estate

As the residential real estate market has bottomed out, real estate investors have now turned to commercial real estate investing. Commercial real estate investing has many different options for the savvy investor. Some of them are the following:

1. Invest in a retail mall as part of a joint venture with several other investors. This allows you to take less risk and gain some experience in commercial real estate investing without costing a lot of money. Make sure you know a lot about your partners, as well as the property you will be buying;

2. New construction. If you have been a project manager or general contractor, you may be able to do new commercial real estate construction as long as you are aware of the different codes. New commercial real estate construction is very different from new residential construction. There are different building codes for commercial buildings that vary from different municipalities. You must be familiar with the codes when building commercial properties;

3. Rehabilitate or renovate older buildings and prepare them for commercial use. Again, you must have some knowledge of building codes and requirements;

4. Buy a storefront property or independent store and lease it to a company. You need to know the location, make sure you have a strong lease with a reliable and stable tenant, and proceed to make a profit on rental income while paying for the property at the same time.

Those are just four examples of commercial real estate investing. No matter what you decide to do, remember the three most important aspects of real estate investing:

1. Rent;

2. Rent;

3. Rent.

This is an old and well-worn saying, but it bears repeating because it is so integral to any type of real estate investment, commercial or residential. If you buy a shop in a blighted area it can be cheap, but unless you plan to work in the shop all day and every day and worry about being robbed or killed on a daily basis, stay away from blighted areas.

You want to make sure there is a need for the commercial real estate you plan to develop or invest in. Office buildings and complexes are often always in demand, as professionals and others often look for cheap office space.

In older towns and cities, there are areas where old houses are being converted into office and store buildings. In the “historical neighborhoods” of the cities, there is an effort to restore old houses and increase property values ​​in the area. These are also an ideal option for those thinking of investing in commercial real estate.

Use any real estate knowledge you have when deciding to invest in commercial real estate, and put whatever skills you have to work for you. By doing as much as you can with regard to construction, rehab, or even property management, you can add income to your investment. Always remember to buy a property in a good location or in a promising location so that it appreciates in value.