March 23 2017
When getting into the world of commercial real estate, there is a bit of an adventure for a person to look into. I should know as I had a long time ago went into the commercial real estate game and got a trial by fire of sorts in the process. I had a boss that wanted to get out of a deal he had that involved a number of units. I looked at them and made the decision to buy these units from him. Long before this, I had only had experience in dealing with single occupant listings as well as single family houses as well. I looked at the world of commercial investing as being the next step in that logic. One of the things that I learned from this world is there are a lot of people that are using real estate virtual tours in their selling of property.
This experience as well as a lot of research helped me in having a good idea as to what I was getting into and prepared me for the road I was about to travel down. There are a lot of good things that can come from this, there also is a lot of issues that could arise if you are not aware of these from the beginning. The following are a few of the things that you will need to make sure that you keep in mind when it comes to investing in commercial real estate. Having this information can save you a lot of time and trouble in the long run.
First, you need to know one of the advantages of this type of real estate, is that the financing is a lot more flexible than with a large number of other types. This is one of the main reasons that a person will get into investing in the first place. This allows you to invest in properties without having to sink a penny of your own money into it. I was able to invest in those properties my boss had and did not have to invest any of my money into it.
Let's face it; this is a lot friendlier of a market to be in than in single family residences as with commercial property, you can offer on-site maintenance. Having this little feature can often draw in a lot more favorable. More people will be inclined to buy or rent from you as they will want that maintenance factor.
As with anything else, there is a drawback to this in the fact that there is a much-increased competition factor. More and more people are seeing the advantage to going into commercial real estate and as a result, are taking their chances. This is leading to the market being very congested. I have found that the use of real estate virtual tours is my best weapon in helping to get a property sold fast and helping to settle any questions that a potential buyer might have.
One last drawback to commercial real estate is that of taking a chance on poor management. This is one of the biggest drawbacks that people will experience in the world of commercial real estate. I make it a goal of mine to go out and to find the best managers for my properties as opposed to letting someone else do the work. This way if things go south, I only have me to blame.