Many people invest in real estate, but investors should be aware of the differences between owning commercial versus residential property. Jumping into the commercial real estate market requires slightly different tactics. Here are some top trends you need to be aware of.
Income If you’ve owned residential real estate, you understand that it’s fairly easy to get financing for the property. Commercial properties are not as easy, but the higher incomes they bring in are worth the investment. Know how much upfront capital you need before you make an offer. Team Residential property ownership is often a solo business. Commercial real estate is all about working with a team. The team consists of underwriters, brokers and lenders searching, evaluating and ultimately making offers on different properties. In the end, it often comes down to price. Network Who you know is never more important than in moving in the commercial sector of the real estate market. A large network is an asset allowing the agent to take advantage of properties before they even hit the market. Moving into commercial real estate from residential can be a smooth transition. You simply need to do a little legwork ahead of time to grow your network, understand the market segments, gather your team and figure out financing. Take it slow and see what happens.
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AuthorHello, my name is Roger Dennison and I'm a successful commercial real estate broker, with more than 20 years in the field. Archives
January 2023
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