10 Dec How Do I Buy My First Commercial Property?
When you decide to get into commercial real estate, finding and purchasing your first property comes with a big learning curve along with the financial investment. With a lot of advice out there comes a lot of confusion about the best way to jump into commercial real estate. But the real key is to find a deal and then approach a seasoned investor.
Finding a deal requires a substantial amount of research and calculations. You have to be able to recognize and understand deals which comes with time, but it is also the best way to start investing.
When you find a potential property, you’ll have to do the calculations to figure out what you could buy it for, what it could lease for, and what the rate of return would be after you’ve accounted for expenses. One way to buy your first commercial property is to save up the money on your own and be ready to jump on a deal when you find it.
Another way to buy your first commercial property is to partner with an established investor. Once you’ve found a deal, you can take it to someone you know and trust who has more experience along with the capital to get you started.
Partnering with an experienced investor allows you to get into commercial real estate without much upfront investment costs while also benefiting from their knowledge and strategies. If you’ve done the research and calculations and will oversee renovation, leasing, and the day-to-day running of the property, a seasoned investor may see this as a good investment not only in the property, but also in you. And you get the benefit of owning and managing a property without the initial investment costs.