Investing in commercial real estate is a fantastic way to make a living, but like all other professions, getting started takes time and effort. It is impossible to encapsulate all that goes into commercial property investing in one brief article, but there are several steps you will need to take in order to land your first golden deal.
Education in a Niche
First, you will need to determine your goal and educate yourself on all that goes into achieving it. Your goal needs to be as specific as possible; for example, you may want to invest in strip malls through property development. You might have a broader vision, but you need to start specific. As the example shows, you’ll want to choose one type of commercial real estate and one type of investing strategy.
Education goes beyond these two things, however. Learn about the process of commercial property investing through the many resources available, such as podcasts, YouTube videos, articles, and local real estate investor groups. You can even learn through having a real estate job.
Real Estate Underwriting
Next, you will want to learn real estate underwriting. Underwriting is a financial evaluation of an investment property’s value. It helps an investor determine the property’s value regarding factors like its upfront price, renovation and maintenance costs, financing, and expected rent. Underwriting is crucial for investors to be able to determine a good deal when they see one.
Your Commercial Property Team
Real estate investing is not a one-man show. It takes a team of individuals who specialize in different aspects of running and investing in CRE. Your team should be one you can rely on long-term, and will consist of a real estate broker, real estate attorney, contractor, property manager, and commercial lenders. All of these people should specialize in your type of commercial real estate.
Practice and Apply!
Landing your first deal and becoming an astute investor takes time and practice. Practice your underwriting skills consistently if not daily, and make an offer once a week. It is like applying for a job; you might apply to 100, but one is just the right fit.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.