How To Get Started In Commercial Real Estate
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.
Having seen the rise and fall of the stock market, the real estate market, and even gyrating prices in commodities like oil and gold, it can be hard to know where to put your money for the best combination of return, security, and limited hassle. The good news is that commercial real estate still provides a viable investment alternative, and it is relatively untrodden ground, since investing in this arena takes more than a little planning, capital and initiative
Stock market investing has historically been an excellent place to invest money. With its annual average of 11% returns since the crash in 1929, the long term compounding effect on your money can be huge! This is the type of return you need to see in order to really build wealth. Unfortunately, that's not a safe annual return like your savings account, it's a return that fluctuates - sometimes posting losses for years at a time. Some investors are just not comfortable with this type of volatility and turn away from stocks because they can't stomach the roller coaster ride.
Since you can have a direct influence on the performance and value of your real estate investments, many people prefer commercial real estate investing to stock.
Many stockholders dip their toes in the water with a few rental homes or a small apartment building. That's a great place to start building wealth and learning the commercial real estate industry. However, for investors looking for major retirement earnings that may be depended upon to grow in a hands-off portfolio, commercial real estate certainly has its place.
Commercial real estate investing for beginners isn't all fun and games though. If you don't have investing or business experience, commercial real estate can be a challenging place to get started. However, learning the process and implementing it is extremely worthwhile - the returns and security are wonderful!
I think the two best ways for beginners to get involved in commercial real estate are to: a) Work their way up through the ranks of owning smaller properties or b) Work with a mentor of some kind - ideally another property owner in your marketplace - to find out what they do, how they do it, and why they do it.
You can find a lot of salesmen trying to get you started in commercial real estate by buying their magical business-in-a-box but their claims of simplicity from just following a simple system are often over-stated. You can get yourself into a lot of hot water in commercial real estate as a beginner unfamiliar with the business, so if you can't afford to make a mistake, it's best to grow slowly and pay your dues. When you do dip your toe in the water, let the voices of experience guide you and check with your attorney, CPA, and other investors in your area to help you confirm you are on the right track.
If you need additional strategy coaching from someone who is acquainted with commercial property, but not "vested" in seeing you appear with a certain end result, think about hiring a professional real estate consultant. My business partners at The Real Wealth Company are financially secure and living off their property revenue. If you want to chat to them to see how they do their business, or get advice on how you to enhance your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial property property.
Please let us know how we can help you. Visit www.TheRealWealthCompany.com for more information. - 23210
Having seen the rise and fall of the stock market, the real estate market, and even gyrating prices in commodities like oil and gold, it can be hard to know where to put your money for the best combination of return, security, and limited hassle. The good news is that commercial real estate still provides a viable investment alternative, and it is relatively untrodden ground, since investing in this arena takes more than a little planning, capital and initiative
Stock market investing has historically been an excellent place to invest money. With its annual average of 11% returns since the crash in 1929, the long term compounding effect on your money can be huge! This is the type of return you need to see in order to really build wealth. Unfortunately, that's not a safe annual return like your savings account, it's a return that fluctuates - sometimes posting losses for years at a time. Some investors are just not comfortable with this type of volatility and turn away from stocks because they can't stomach the roller coaster ride.
Since you can have a direct influence on the performance and value of your real estate investments, many people prefer commercial real estate investing to stock.
Many stockholders dip their toes in the water with a few rental homes or a small apartment building. That's a great place to start building wealth and learning the commercial real estate industry. However, for investors looking for major retirement earnings that may be depended upon to grow in a hands-off portfolio, commercial real estate certainly has its place.
Commercial real estate investing for beginners isn't all fun and games though. If you don't have investing or business experience, commercial real estate can be a challenging place to get started. However, learning the process and implementing it is extremely worthwhile - the returns and security are wonderful!
I think the two best ways for beginners to get involved in commercial real estate are to: a) Work their way up through the ranks of owning smaller properties or b) Work with a mentor of some kind - ideally another property owner in your marketplace - to find out what they do, how they do it, and why they do it.
You can find a lot of salesmen trying to get you started in commercial real estate by buying their magical business-in-a-box but their claims of simplicity from just following a simple system are often over-stated. You can get yourself into a lot of hot water in commercial real estate as a beginner unfamiliar with the business, so if you can't afford to make a mistake, it's best to grow slowly and pay your dues. When you do dip your toe in the water, let the voices of experience guide you and check with your attorney, CPA, and other investors in your area to help you confirm you are on the right track.
If you need additional strategy coaching from someone who is acquainted with commercial property, but not "vested" in seeing you appear with a certain end result, think about hiring a professional real estate consultant. My business partners at The Real Wealth Company are financially secure and living off their property revenue. If you want to chat to them to see how they do their business, or get advice on how you to enhance your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial property property.
Please let us know how we can help you. Visit www.TheRealWealthCompany.com for more information. - 23210
About the Author:
Emily Cressey and Rob Powell have been investing in commercial real estate together since 2005. You can benefit from their shared expertise and that of their partners through their fee-based real estate consulting and advisory services.