Commercial property investment isn’t always for the faint of heart, but with proper guidance and professional help it can be one of the smartest, most lucrative business moves to help secure your future. If commercial property investment is a new idea to you, then chances are you may be somewhat overwhelmed by all the intricacies of how to get started. This article may help you find your way through the beginning stages of property investment.
What is Commercial Property Investment?
In the most basic terms, commercial property investment is channeling money you have access to today into a commercial building, piece of real estate, or related resource to help you make a profit over an extended period of time, and sometimes even immediately. Of course, there are lots of factors that influence how successful commercial property investment can be, and it’s all about learning the intricacies of what affects commercial real estate value. That’s where professionals come in.
The Importance of Professional Consultation
You may have noticed our choice of words earlier, when referring to how you begin investing in commercial real estate – it takes money, and often your own money, that is without investors or partners. In other words, there’s usually a lot at stake when it comes to commercial property investment, so at the very least it is essential to establish a working relationship with experts in the commercial real estate field. This can help you avoid the common pitfalls involved with real estate investment that may lead to serious financial loss.
Basic Tips and Considerations for Beginners
- Determine your investment avenue
If you have a chunk of money set aside somewhere that you’re itching to use for commercial investment, then that’s great – but this is rarely the case. If you’re just starting, there are several options to finding the money required for your first investment; such as taking out leverage from one of your assets, such as a home or business. However, this is risky and often dangerous, so it’s important to consider your options with a professional.
- Determine your investment foundation
Rarely is it a good idea to purchase commercial real estate in your own, private name. In an effort to protect yourself, you may want to consider investing through other channels, such as partnerships or liability companies. Protecting your personal assets is what this point boils down to.
- Find your niche or area of interest
If you’ve already done your homework and research and have an idea of where you’d like to channel your money, then you’ve already established a passion for investment. However, there is more gray area than finding a property you like or interests you; consulting with a professional real estate firm or investment company is always recommended to ensure that your real estate interests will be lucrative and fruitful in the long run.
Avoiding the Major Mistakes Beginners Make
Without a baseline of knowledge and experience in property investment, it can be tricky to navigate the market properly and with success. These are the real issues you want to avoid when investing in commercial property:
Failing to conceptualize profit accurately
With commercial properties in particular, there is much to consider; property management, rent, the type of business you wish you rent to, location, etc. Each of these factors, and more, affect how profitable the investment will be.
Losing personal assets
Attaching your own name and personal assets to commercial property is never a good idea; it usually results in hardship, financial burden, and undue stress.
This is a last resort situation where investors find themselves in a pinch that they can’t get out of easily. Bankruptcy is nothing to be ashamed of, but it can certainly be avoided with proper knowledge and preparation.
The comprehensive real estate investment services offered through Landwin have been recognized nationally, and have helped countless individuals and companies find success in commercial real estate. No matter what point you’re starting at, Landwin can help. With offices in Encino and Century City, CA, our properties include locations in the area, as well as all over the country. To learn more about the services we provide, our teams of professionals, or our long-standing expertise in real estate investment, please call us directly. We look forward to helping you secure your financial future.