The Beginner's Guide To Commercial Real Estate - What Every New Investor Should Know
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With many Americans now realizing they can't depend on the government to take care of them in old age, investors are now turning to face the hard reality that it's time to take care of their own financial futures.
While some may aspire to be "rich," others see financial independence as a necessity when it comes to surviving and enjoying their retirement years. Savings accounts grow too slowly, as do bonds, in order to create the growth and income most investors seek for their retirement portfolios. Smart investors tolerate risk and volatility in search of the higher returns that will help their nest eggs hatch and grow into cash cows.
Despite the excellent historical returns in the stock market - 11% on average - the up and down gyrations of the ticker tape are frustrating to many investors. There's little that anyone in the public can do to affect the value of his stock investments. You just have to watch prices fluctuate and hold on for the ride.
Real estate investing is a wonderful alternative because it is something you CAN control directly.
Many stockholders dip their toes in the water with a few rental homes or a small is a great place to start building wealth and learning the commercial real estate industry. However, for financiers on the lookout for serious retirement income that may be depended upon to grow in a hands-off portfolio, commercial property definitely has its place.
Commercial property for beginners is not something to be entered into gently. It's hard to read a book or talk to a broker and really understand everything that is concerned in making and financing a good real estate deal, and then handling your property when you have it in place.
There is a lot to consider when evaluating a commercial income property. It's a good idea to go slowly and seek the advice of competent legal and financial advisers. Your real estate broker is also an excellent source of information, but remember, his tendency is always going to be to push you to move forward with the deal (so he can get paid) even if it's not the best idea from a financial perspective.
You can find a lot of salesmen trying to get you moving in commercial property by buying their enchanting business-in-a-box but their claims of simplicity from just following an easy system are frequently over-stated. You can get yourself into lots of hot water in commercial property as a beginner unfamiliar with the business, so if you can't afford to make a howler, it's best to grow slowly and pay your dues. When you do dip your toe in the water, let the voices of experience guide you and check with your solicitor, CPA, and other investors in your area to help you confirm you are on the right track.
If you need additional strategy coaching from someone who is familiar with commercial real estate, but not "vested" in seeing you emerge with a certain outcome, consider hiring a professional real estate consultant. My business partners at The Real Wealth Company are financially independent and living off of their real estate income. If you would like to talk to them to see how they do their business, or get advice on how you can improve your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial real estate property.
Please let us know how we can help you. Visit www.TheRealWealthCompany.com for more information.
While some may aspire to be "rich," others see financial independence as a necessity when it comes to surviving and enjoying their retirement years. Savings accounts grow too slowly, as do bonds, in order to create the growth and income most investors seek for their retirement portfolios. Smart investors tolerate risk and volatility in search of the higher returns that will help their nest eggs hatch and grow into cash cows.
Despite the excellent historical returns in the stock market - 11% on average - the up and down gyrations of the ticker tape are frustrating to many investors. There's little that anyone in the public can do to affect the value of his stock investments. You just have to watch prices fluctuate and hold on for the ride.
Real estate investing is a wonderful alternative because it is something you CAN control directly.
Many stockholders dip their toes in the water with a few rental homes or a small is a great place to start building wealth and learning the commercial real estate industry. However, for financiers on the lookout for serious retirement income that may be depended upon to grow in a hands-off portfolio, commercial property definitely has its place.
Commercial property for beginners is not something to be entered into gently. It's hard to read a book or talk to a broker and really understand everything that is concerned in making and financing a good real estate deal, and then handling your property when you have it in place.
There is a lot to consider when evaluating a commercial income property. It's a good idea to go slowly and seek the advice of competent legal and financial advisers. Your real estate broker is also an excellent source of information, but remember, his tendency is always going to be to push you to move forward with the deal (so he can get paid) even if it's not the best idea from a financial perspective.
You can find a lot of salesmen trying to get you moving in commercial property by buying their enchanting business-in-a-box but their claims of simplicity from just following an easy system are frequently over-stated. You can get yourself into lots of hot water in commercial property as a beginner unfamiliar with the business, so if you can't afford to make a howler, it's best to grow slowly and pay your dues. When you do dip your toe in the water, let the voices of experience guide you and check with your solicitor, CPA, and other investors in your area to help you confirm you are on the right track.
If you need additional strategy coaching from someone who is familiar with commercial real estate, but not "vested" in seeing you emerge with a certain outcome, consider hiring a professional real estate consultant. My business partners at The Real Wealth Company are financially independent and living off of their real estate income. If you would like to talk to them to see how they do their business, or get advice on how you can improve your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial real estate property.
Please let us know how we can help you. Visit www.TheRealWealthCompany.com for more information.
About the Author:
Emily Cressey and Rob Powell have been investing in commercial real estate together since 2005. Emily and Rob, as well as their business partners, enjoy coaching and guiding real estate investors new to commercial investing.
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