Jumpstarting your Commercial Real Estate Career
Understanding the ins and outs of real estate is one thing; having the knowledge and experience necessary to be successful in commercial real estate investing is a whole other thing. Maybe you’ve come to expect constant changes in real estate and you’re completely prepared to just properties based on the bones, not the exterior trappings. However, there are four rules unique to investing in commercial real estate that can help you jumpstart your new career.
One: Don’t Wait to Start
If you have the funds and you’ve identified some properties, don’t wait! Too many new investors miss out on prime opportunities because they’re waiting for the perfect market situation. This doesn’t mean you have to go crazy; you’ll still be better off choosing one or two properties to begin. Just remember that the sooner you get started, the better off your results will be. You’ll see some appreciation in the value of your properties and you’ll begin to enjoy a small and growing stream of capital for your new investing ventures.
Two: Build to Larger Properties Quickly
There’s nothing wrong with sticking to smaller properties, but if you really want to enjoy comfortable profits, you need to reach higher. As soon as you start to feel comfortable with commercial real estate investing, start moving toward larger properties. Those valuable assets appreciate faster and will inspire more growth, more quickly in your portfolio than a bunch of small properties.
Sometimes people want to diversify their investment portfolio, but if you’re serious about real estate investing, this may not be a good option. Remember two important things: 1. Investing in the stock market may require the same amount of financial investment that real estate investment requires. 2. If you’ve invested in real estate and the market falls, you still have tangible assets.
Three: Wait Longer for Better Profits
Many real estate investing novices sell quickly once they’ve seen appreciation in their properties. Sadly, these investors are missing out on much better property values. In growing communities with dynamic real estate markets, you’ll be better off if you wait. Work with a mentor who has experience in this area, so you can get better at recognizing the best time to sell.
Four: Invest Through an IRA
Many investors begin to invest in commercial real estate with their personal funds. When this is the case, you’ll be better off with a self-directed IRA that allows you to direct alternative investments into your retirement. If you’re not sure how to proceed with this option, visit with a financial advisor at your bank.