Real estate investing can be both exciting and scary. For a first time commercial real estate investor there are a lot of simple mistakes that can be made. Our recommendation is to start slow, and make sure you’re confident before diving head in.
By being cautious you will save yourself money, headaches, and prevent starter mistakes.
If you’re looking to get into commercial real estate we recommend starting with some basic office spaces. These are easy to manage, and business owners are(most of the time) more reliable than homeowners or apartment tenants. Be sure to have the property thoroughly inspected before purchasing. It may seem like common sense, but we see eager investors who are dead set on a commercial property before even having it inspected.
Once you have a feel for the market and are confident with your first commercial venture, we recommend spending a bit more cash and re-purposing popular venues. Some commercial spaces make excellent concert or wedding venues, and can often be booked at $10,000+ for one day. As you can imagine, this adds up extremely quickly if your property is in a good location and you have your marketing covered.
As always, be sure to weigh the risk-reward ratio before making any decision, and make your decisions based on logic and not excitement or urgency.