For invest the money Real Esatate is the safest investment avenue.Real Estate is a good way to make a good profit by your investing money. It is more profitable when you invest your money in good direction. The talks of real estate are generally focussed towards apartments, residential real estate; commercial real estate seems to take a back seat. commercial real estate also is a good option for investing in real estate.
Commercial real estate have different kinds of properties like office complexes or factories/ industrial units. However, that is not all of commercial real estate. There is more type of commercial real estate like Health care centers, retail structures and warehouse etc. Even residential properties like apartments, homes, houses are considered commercial real estate. In fact, such commercial real estate is much in demand.
Main query comes that commercial real estate really profitable?
Commercial and Residential both are profitable if you know the real estate cycle and how it works. The real estate cycle is the most important key to your real estate investing. If you do not understand how the cycle works, your commercial real estate investing will be more difficult. When you understand the cycle and identify where your market lies, then investing becomes easier because you are going with the trend instead of fighting it. Various investing techniques are Wholesaling, Seller financing, Lease Options , Rental properties, Rehabbing etc.
There are following four steps for invest in Commercial real estate -
Step 1: Research
The first thing you need to understand before you can invest in real estate is an understanding of the characteristics of a real estate transaction. All of the subtleties can be taken care of by an attorney and accountant, who are well-equipped to protect you from fraud and risk. So, step one is finding a real estate attorney, and accountant who can service your requirements. Do not be concerned too much about the price, as this expense will be computed into your return from the investment. You can discover the right property, and engage a mortgage broker before hiring an attorney.
Step 2: Figure out your budget
How much cash are you able to invest or raise, and what return do you have to produce from that investment to make the investment worthwhile? This issue needs to be determined up front. This amount is purely subjective, and will vary from instance to instance.
Step 3: Determine your specific technique.
Some are the most popular techniques:
Rehab: A rehab is where you purchase a run-down building that requires lots of attention.
Buy and Hold: You buy real estate that is valued at a fair price which will stay in your portfolio for years to come. It could be in your neighborhood, across town, or even in a foreign country. While you hold on to the real estate, the value will continuously rise and then sell with a more profit.
Quick Flip: The quick flip usually requires a property sputtering with foreclosure or bankruptcy.
Step 4: Start the search
Now you are ready for search the Property. For search a good property you can take help newspapers, internet, your local market etc.Commercial real estate investment is really about finding good deals. And finding good deals does take some effort.