Commercial real estate investing can be a very profitable endeavor, but if you’re trying to break into this industry and don’t know how to start, here are just a few basics to help get you started:
What is commercial real estate? Commercial property is basically anything that isn’t residential property — i.e., business offices, retail stores, schools, medical facilities, etc. Sometimes even apartments and condos can be considered commercial, depending on the company that owns the buildings and if they’re used for other things as well. Commercial property doesn’t actually have to have a building or business physically on it either; plots of land that are up for lease are considered commercial real estate too.
Why do we have commercial real estate companies and investors? Because commercial real estate properties include businesses and organizations that contribute to the economy, this industry is actually very important. But because businesses often don’t have the financial means to buy a property and construct a facility from scratch, other companies and investors will come in and pay for the groundwork: the basic environmental preparations, the construction, and other basic details like plumbing and heating systems. Once everything is ready, businesses can move in — and when they do, they’ll bring jobs and they’ll provide valuable commodities for the community. Commercial real estate companies are simply needed to get things rolling.
How can someone begin investing in commercial real estate? Buying commercial real estate isn’t just limited to big corporations; individuals often invest very successfully. The best thing to do is to work through real estate investment trusts, which are bought on sold through the stock market, and which tend to be safer than buying the actual property. There are also plenty of consulting firms available, and the experts at these firms can help clients organize finances and make smart investing decisions. For someone looking to make a long-term career out of commercial real estate investing, seeking help from these firms is a great idea.
So what do you think? Is there something important about the commercial real estate business that was left out? Be sure to let us know in the comments section, and help your fellow investors get started! Refernce materials.