The Beginner's Guide To Commercial Real Estate - What Every New Investor Should Know
These days, Americans are all too aware that they can't depend on Uncle Sam to take care of them in retirement, and relying on their employer isn't an option either. It's time to use wits and discipline to responsibly define our own retirement options.
While some may aspire to be "rich," others see financial independence as a necessity when it comes to surviving and enjoying their retirement years. Savings accounts grow too slowly, as do bonds, in order to create the growth and income most investors seek for their retirement portfolios. Smart investors tolerate risk and volatility in search of the higher returns that will help their nest eggs hatch and grow into cash cows.
One asset class that has traditionally met these goals is the stock market. Low-fee, high-growth mutual funds have an excellent track record when it comes to long-term returns. However, many investors feel frustrated by the sense that there's nothing they can do to improve the performance of their stock and mutual fund portfolio.
That's why investing in real estate makes so much sense. IF you want to work with an asset you can control, rather than just watch, you may want to look into commercial real estate investing.
Many people get involved in real estate by buying a small rental house, or renting out a former residence. That's a good place to learn a few basics, but investing in commercial real estate is a much more challenging endeavor.
Commercial real estate for beginners is not something to be entered into lightly. It's hard to read a book or talk to a broker and really understand everything that's involved in making and financing a good real estate deal, and then managing your property once you have it in place.
I think the two best ways for beginners to get involved in commercial real estate are to: a) Work their way up through the ranks of owning smaller properties or b) Work with a mentor of some kind - ideally another property owner in your marketplace - to find out what they do, how they do it, and why they do it.
You will find a large amount of salesmen trying to get you moving in commercial real estate by buying their magical business-in-a-box but their claims of simplicity from just following a simple system are often over-stated. You can get yourself into lots of hot water in commercial real estate as a newbie unfamiliar with the business, so if you are unable to afford to make a boo boo, it's best to grow slowly and pay your dues. When you do dip your toe in the water, let the voices of expertise lead you and check with your lawyer, CPA, and other financiers in your area to help you confirm you are on the right track.
If you want extra plan training from someone that is familiar with commercial property, but not "vested" in seeing you emerge with a certain outcome, consider hiring a pro property specialist. My business partners at The Real Wealth Company are financially independent and living off of their property earnings. If you would like to talk to them to see how they do their business, or get recommendation on how you can improve your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial real estate property.
Please let us know how we can help you. Visit www.TheRealWealthCompany.com for more information. - 23221
While some may aspire to be "rich," others see financial independence as a necessity when it comes to surviving and enjoying their retirement years. Savings accounts grow too slowly, as do bonds, in order to create the growth and income most investors seek for their retirement portfolios. Smart investors tolerate risk and volatility in search of the higher returns that will help their nest eggs hatch and grow into cash cows.
One asset class that has traditionally met these goals is the stock market. Low-fee, high-growth mutual funds have an excellent track record when it comes to long-term returns. However, many investors feel frustrated by the sense that there's nothing they can do to improve the performance of their stock and mutual fund portfolio.
That's why investing in real estate makes so much sense. IF you want to work with an asset you can control, rather than just watch, you may want to look into commercial real estate investing.
Many people get involved in real estate by buying a small rental house, or renting out a former residence. That's a good place to learn a few basics, but investing in commercial real estate is a much more challenging endeavor.
Commercial real estate for beginners is not something to be entered into lightly. It's hard to read a book or talk to a broker and really understand everything that's involved in making and financing a good real estate deal, and then managing your property once you have it in place.
I think the two best ways for beginners to get involved in commercial real estate are to: a) Work their way up through the ranks of owning smaller properties or b) Work with a mentor of some kind - ideally another property owner in your marketplace - to find out what they do, how they do it, and why they do it.
You will find a large amount of salesmen trying to get you moving in commercial real estate by buying their magical business-in-a-box but their claims of simplicity from just following a simple system are often over-stated. You can get yourself into lots of hot water in commercial real estate as a newbie unfamiliar with the business, so if you are unable to afford to make a boo boo, it's best to grow slowly and pay your dues. When you do dip your toe in the water, let the voices of expertise lead you and check with your lawyer, CPA, and other financiers in your area to help you confirm you are on the right track.
If you want extra plan training from someone that is familiar with commercial property, but not "vested" in seeing you emerge with a certain outcome, consider hiring a pro property specialist. My business partners at The Real Wealth Company are financially independent and living off of their property earnings. If you would like to talk to them to see how they do their business, or get recommendation on how you can improve your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial real estate property.
Please let us know how we can help you. Visit www.TheRealWealthCompany.com for more information. - 23221
About the Author:
Emily Cressey and Rob Powell have been investing in commercial real estate together since 2005. You can benefit from their shared expertise and that of their partners through their fee-based real estate consulting and advisory services.
posted by X - Men @ 2:23 AM
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