As commercial real estate investor you know that commercial real estate investment is an excellent vehicle for diversifying your investment portfolio and establishing a steady source of income.
However, as in any other serious business or investment, those considering investing in a commercial real estate not only need the drive and ambition it takes to see a project through, but they also need a strategic investment plan.
What Does It Mean To Have A Strategic Investment Plan?
Creating a strategic investment plan ensures you have a systemic method for finding, evaluating, and acquiring commercial investment properties. And because it’s a system, it can be replicated, allowing you to repeat successes and avoid mistakes.
The first step in establishing an investment plan is to decide what your investment goals are.
For most investors, potential strategies for investment will depend greatly on your age, and how much risk you’re willing to tolerate in exchange for an opportunity to accrue higher profits.
Younger investors, for example, are usually willing to take additional risks in order to gain the opportunity of higher returns.
Spending the time to renovate, rent, market, and otherwise improve the assets they’ve purchased is a burden they willing take on since they expect to receive increased property value in the future.
If you’re an older investor, you’ve most likely already spent hundreds of hours of your time managing investment properties. Your time is more valuable, and you’d rather spend it doing the things you enjoy.
A check in the mailbox once a month from your tenants, minus the aggravation from tenants, is considered more than worth it.
Yes, the returns are slightly smaller – but the risks are lower, and the income steady and safe. It translates to less debt, less risk, a steady income all while preserving the capital you’ve invested.
Discover What Kind Of Commercial Real Estate Investor Are You
Take the quiz below to discover what type of commercial real estate investor you are as well as which commercial investment properties suit you best.