The Commercial Real Estate Investing Guide For Beginners
These days, Americans are all too aware that they can’t depend on Uncle Sam to take care of them in retirement, and relying on their employer isn’t an option either. It’s time to use wits and discipline to responsibly define our own retirement options.
Of course, there are always those who want to build wealth and amass a fortune, just so they can say they’ve done it. However, many more of today’s beginning real estate investors are looking for something more tangible – they want to know they and their families will be taken care of – and able to live at the standard to which they have become accustomed, even after they have stopped working for a paycheck.
Despite the excellent historical returns in the stock market – 11% on average – the up and down gyrations of the ticker tape are frustrating to many investors. There’s little that anyone in the public can do to affect the value of his stock investments. You just have to watch prices fluctuate and hold on for the ride.
That’s why investing in real estate makes so much sense. IF you want to work with an asset you can control, rather than just watch, you may want to look into commercial real estate investing.
Many speculators dip their toes in the water with a few rental homes or a small apartment building. That’s a great spot to start building wealth and learning the commercial property industry. However, for investors looking for serious retirement earnings that may be relied upon to grow in a hands-off portfolio, commercial property definitely has its place.
Commercial real estate for beginners is not something to be entered into lightly. It’s hard to read a book or talk to a broker and really understand everything that’s involved in making and financing a good real estate deal, and then managing your property once you have it in place.
I believe the two best methods for beginners to get involved in commercial property are to a) Work their way up thru the ranks of owning smaller properties or b) Work with a coach of some sort – ideally another property owner in your marketplace – to discover what they do, how they do it, and why they do it.
Beware the real estate “trainer” who will charge you a fee for his course that tells you everything you need to know about commercial real estate investing for beginners. That might work okay for single family rentals (although it’s still an uphill battle to learn everything you need from a course or “system”), but it’s a silly move when you take on an investment plan that includes assets as complicated as commercial real estate. There are so many different things to look at and evaluate in commercial deals – and so many things that could go wrong, it’s an area you want to trod with experience on your side. Either your own direct experience in investing, or that of a mentor or coach who will work with you on an ongoing basis to help you along the way.
If you need help with your real estate strategy, consider hiring a coach, mentor or independent real estate adviser who can help you evaluate your personal situation and/or the commercial property you’re considering.
Getting good advice can sometimes be the best investment you will make.
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