To get started, the very first thing you as the commercial real estate investor needs to do is line up three pros.
When I say pros I mean many years’ experience with proven track records of success with a:
- Top real estate attorney,
- CPA and
- Commercial real estate broker specializing in your field of interest.
Don’t try to outsmart the pros or the large investment real estate pros that forgot more than you know. Don’t use the excuse of “I made money a couple of times investing in commercial real estate by myself so who needs these people”? YOU DO!
Here Are The Most Essential Steps For Investing In Commercial Real Estate:
- Start reading some articles and basics books on the subject. Go to the websites and read their blogs to gain basic knowledge of the subject.
- Have an initial conversation with your family and see what amount of equity you are willing to place in an investment and do you want to borrow money to buy something?
- Next, what return on equity are you looking for and how much risk are you willing to take to gain perhaps a greater return.
- What are your long term goals steady cash flow appreciation or tax write offs or all three?
- Now have an initial conversation with your professional commercial real estate broker and see if he or she agrees with your expectations.
- If so have them give you some examples or introduce you two several strategies that would reach your goals.
- Go over the examples, ask questions and make sure you understand the risk-reward tolerance issues.
- Pick out an investment vehicle, run it by your family and attorney or CPA and the submit an LOI, letter of intent.
- Hope it is accepted and go to contract, and work through due diligence to make sure the investment property is everything you desire.