Whether you own small-scale commercial real estate and are wondering how to move on to larger properties or are completely new to the industry, Northern Edge Real Estate can help you outline strategies for your personal situation. Everyone has a unique starting point and it is our goal to help you identify yours and achieve your goal of building wealth through commercial real estate.
One of the first steps to take is to research the common mistakes made by real estate investors and how you can avoid them. If you’re just beginning your commercial real estate journey, you may have already stumbled over these, but don’t worry! We have included key advice below that will get you started on the path to being a successful, well-educated investor.
Real estate investors often have dozens of questions, from “Which property type should I purchase?” to “Is this a valuable asset?” and of course, “How do I start generating income from my property?” And while these are essential to the buying process, you will want to dig even deeper to answer the following.
- What is my strategy?
Every commercial real estate investor needs to have a strategy to avoid losing money— an investment strategy. You will need to devise a plan to see your investment through and ultimately achieve your goal. Before you even embark on search for commercial real estate property, ask yourself what your ideal end result is and how you plan to get there.
- How involved do I want to be?
Owning commercial real estate property, while it can be lucrative, is often a full-time job. Ask yourself if you are ready to put in the work of maintaining the property and handle the in’s and out’s of managing tenants.
- Are my finances in order?
If you are looking to purchase commercial real estate as a “get rich quick” scheme, you will want to reconsider. Real estate is an excellent way to build wealth, however it does not happen overnight. Decide if your finances are in the place they should be before you invest in a commercial property.
- Do I have someone on my side?
Commercial real estate investing is best navigated with an expert on your side. Remember, a commercial purchase is much different than residential and comes with its own set of guidelines and terminology. Northern Edge Real Estate can assist you with every aspect of the purchase and answer any questions along the way.
- Is this a valuable asset?
As mentioned above, there is a lot to explore in determining whether a property will be a valuable asset. You will want to familiarize yourself with the CAP Rate algorithm, which variables affect the CAP Rate, and even which property types can withstand economic downturn.
Ready to explore your next steps to get involved in commercial real estate? Let Northern Edge Real Estate be your guide.