Wednesday, June 27, 2012

Commercial Property Investors

In this volatile and at times, unpleasant real estate market, what does it take to become a successful commercial property investor?  Anwar Barbouti would tell you: Anyone new to the commercial market should be willing to spend time investigating sales history, vacancy rates and price per sq. foot for properties in their market.  A large commercial investment should not happen too quickly.  Some quiet observation, discussion with realtors within your market and a real sense of the value of different properties are essential skills that any new investor should adopt.

A commercial property investor must consider how much risk he/she is willing to take on.  Just because property sales prices have decreased in recent months or years does not necessarily mean you are ready to invest.  If the success of a single commercial property is tied directly to maintaining one's family budget or financing a college education, a smart investor will think twice.  A wise commercial property investor knows that business properties are long-term propositions.  They should be viewed as retirement vehicles or at least as long-term investment vehicles. 

Perhaps you've recently received an inheritance, large bonus or have the backing of a high-quality investor.  At any rate, a good source of cash will be essential as you prepare to put down earnest money, pay contractors to investigate construction details, or any of the other myriad details that arise as you begin the search of commercial property.  A good commercial property investor will secure bank financing before any real searching begins.  No one needs the hassle of finding a perfect property and then finding out there's no funding available.

Commercial property investment can be an exciting and lucrative investment opportunity for the right kind of investor.  Be sure that dealing with tenants, networking with realtors and other property owners, and navigating the financing maze is all something you're willing to do.  While management companies can deal with some of the day-to-day details, a good commercial property investor should still be willing to keep and active and engaged role in running any commercial property.  This kind of investment is not for the faint of heart, but it certainly is rewarding for those who stay with it for the long-term.