Investing in Commercial real estate is really not "rocket science". But there are certain key steps you do need to follow. And those involve you in making a number of simple (yet vital) decisions.
DECISION #1: Setting Goals for the long and short term?
In other words, are you seeking Income on Capital growth - or maybe both? Perhaps you are after some good Tax savings - through negative gearing or Depreciation?
DECISION #2: The Sleep Test!
You need to establish your comfort level as far as the amount you will borrow. For some people, 80% is just fine; but for others, 50% is all they can live with. Therefore, you need to determine your "Threshold of Insomnia" from the.
DECISION #3: Your overall Portfolio mix.
Do you intend to focus on just one sector in the Commercial property market - like Retail? Or would you prefer a spread across the Office and Industrial sectors as well. Having some diversity will help you smooth out any ups and downs during your ownership.
DECISION #4: Go it Alone ... or join with others.
Not many people when they begin are able to jump straight into the market, and buy a Commercial property for $ 1 million+. so you can leapfrogged your competition by joining with another 12 to 15 like-minded investors, in a Private Syndicate - to buy something in the $ 2 to $ 5 million range - where you obtain better value for your money.
DECISION #5: Choosing your team of Consultants.
As you'll appreciate, simply being able to move quickly can snare you some of the best deals. Therefore, you need to have a trusted group of Consultants ready to help you with ... assessing Value; putting the Deal together; reviewing the Contracts; sorting out Finance; performing the Due Diligence and so on.
If you would like to learn even more ideas and strategies ... I'd invite you to watch this FREE video and discover the #1 Secret for success with Commercial property
Chris Lang is a Mentor, Coach and Buyer's Advocate ... for Commercial Property Investors.
Chris Lang is a Mentor, Coach and Buyer's Advocate ... for Commercial Property Investors.
Orignal From: Commercial Property: 5 Key Decisions To Guarantee Your Success With Commercial Property Investing
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