Commercial real estate investment in Massachusetts can be a great way to increase your cash flow, add to your passive wealth, and build a nest egg. If you’re on the fence about commercial real estate investment in Massachusetts, consider planning your first steps. To help you along the way we have put together some of the hottest commercial real estate investment tips!
Think Like a Professional
Perhaps you are an amateur when it comes to commercial real estate investment, but that doesn’t mean that you have to act like one. Sometimes, in order to get the best deal on commercial properties, you need to think like a professional! Consider reading books on the topic, browsing NREI Online, Wall Street Journal, and Forbes to get yourself in the mind state.
As commercial properties are a larger investment, the majority of commercial property lenders are going to want a solid business plan or years of experience. Starting on a small project like an office condo, 4-unit apartment complex, or retail land will help get the kinks out of your buy/hold/lease/sell process. After you close your first projects, use the profits to go larger and larger.
Always Have a Plan of Action
When it comes to commercial property investment, it’s best to plan for worst-case contingency challenges that may come up. Important things to consider would include how many months can you can afford to pay your loan if you cannot immediately find a tenant. Question how this will impact your personal finances. Think about your expectations and ask your commercial real estate agent if they are feasible in the current market place.
Learn What Makes for A Good Deal
Any good investor knows the difference between a good deal and a bad one. This can take some time to learn. One basic rule is to walk away from deals if you feel the need. Consider potential repairs to the property, upgrades and whether these changes are feasible.
Always Be on the Lookout
Commercial property investors are always on the lookout for investment opportunities. They won’t just look at classified ads, but also will use the internet and even speak to other professionals to see what is about. That way, as soon as a great deal comes up, you will be ready to get to work!
We hope that you have found these commercial real estate investment tops for Massachusetts useful, particularly when it comes to making that leap into real estate. With some effort and a bit of business smarts, you can be sure to make yourself some money and maybe even catch the investor bug!