Who Should Invest In Commercial Real Estate
By : Taro Chellaram, CCIM
There are several reasons why someone would choose to invest in commercial real estate. While it is not as liquid as savings account or even stock market which, while still more liquid than real estate, it increases the risk the loss of return as well as the invested capital, real estate has lower risk than stock market and has higher returns potential. This risk-return benefits of real estate investing alone are enough to convince most investors that this venue of investment is much more attractive and desirable for their long-term wealth accumulation. While savings deposits today earn just at 1.5%, why leave money on the table when you have the potential for higher returns (IRR) in real estate investing averaging in the high teens?
While investing in Commercial real estate are done by investment savvy individuals as well as companies, there is no denying that some investors do exponentially better than others. Today, we will examine what qualities a good investor should possess if they are considering investing in commercial real estate.
As we know, anyone can become an investor. You don't have to be a scholar in commercial real estate, nor do you need to spend years learning the ropes. A passion to learn and a healthy willingness to take risk are the only true requirements, yet, there are some investors who perform markedly better than their counterparts. After conducting a series of interviews with the top performing investors, we have narrowed down the qualities that help to propel individuals to excellence in the commercial real estate world.
Commercial real estate is a time-consuming endeavor purchasing a property, managing tenants and performing maintenance all require time and patience. Someone looking to strike it big in commercial real estate should be able to be organized and flexible in their schedule
The trouble is often in the details, and commercial real estate is no difference. An ideal investor looks over all their agreements, contracts and paperwork thoroughly. In doing so, an investor can challenge issues and disputes before they occur. A wise investor is detail oriented.
Not that you will need to enroll in your nearest university, but a serious commercial investor is always studying market trends. The market is constantly changing and is impacted by a multitude of factors. That is why it is important to stay up to date on all market trends.
Hire the Experts
Even the savviest investors like the Billionaire Warren Buffett uses the help of market brokers, experts and analysts. Warren Buffett will still be the one to make the decision but the experts he hires perform all the research and analysis and present their recommendations. As a new or seasoned investor, you are strongly advised to utilize the services of your Broker, which can come at no cost the investor, to help make an informed decision in your investments.
Of course, real estate is not like the stock market! If you are looking for a quick return on your investment, then real estate is not for you. But, if you are looking for a long-term investment with excellent returns, real estate is and always will be the best return on your investment for you and your family. Does this sound like you? If so, you may be moments away from an investment career that can offer you more freedom with greater earning potentials than ever before.