Anybody interested in adding wealth to their portfolio should consider setting some real estate goals. People often think of flipping or renting homes, but commercial real estate also offers ample opportunities.
The market for commercial real estate is worth more than $1 trillion, even during down periods.
These tips will help you make the right commercial property investments for your portfolio.
1. Know the State of Commercial Real Estate
Every time you purchase or send feelers on a property, you're entering the market in a different position. The current state of commercial real estate will let you know whether you're buying a property high or low based on previous data.
Interest rates might also be up or lower. Read up on all of these factors so that you are getting the best available deal.
2. Consider Mixed Uses
The day of the nondescript commercial building is long gone. Instead, investors are better off buying mixed-use commercial property.
Mixed-use properties fulfill more than one niche at a time and diversify your property at the same time. This is the wave of the next several years, so expect to see more developers choosing to combine things like retail, condos, and shared workspaces.
You're better able to close a commercial real estate deal when you plan for the future and think long-term.
3. Manage Your Risks
If you're going to last in the commercial real estate market, you need to be fine with risk. You always will be as long as you plan for it.
Secure insurance for any property that you purchase. In addition to a comprehensive commercial insurance plan, make sure that you also buy landlord insurance.
Landlord insurance plans can include protection from cases where you can be found legally liable. You should also get the advice of a real estate professional who can guide you through the potential risks ahead.
4. Get Professionals on Your Side
After you have closed on a piece of commercial real estate, you need to consider your plan for renting it out. A commercial rental property is more likely to attract tenants when it's well-managed.
Working with commercial real estate professionals can help you handle every aspect of management. They can do things like create and administer contracts, address your repairs, collect payments, and manage business odds and ends.
5. Tour the Rental Property
It's vital that you open your commercial property to tours. You can use a combination of in-person tours and digital tours. The important thing is that you have professionals to help you sell the most attractive details.
That way, you'll get your first tenants and could even have a waiting list. Keep office hours for the property so that the public has someone available to handle questions.
Manage Your Commercial Property Investments
If you'd like to increase your success and returns on your commercial property investments, this real estate advice is sound.
PMI Miami Dade can assist you with any part of your real estate portfolio you're trying to build. Contact us for a free rental analysis, or call us at 305.340.3644.