Investing in Commercial Real Estate can be quite a lucrative business. Compared to residential, there are often a lot more clients to bring in a substantially higher profit. Below are 5 top tips to getting ahead in the commercial real estate industry.  

Choose Your Properties Wisely 

Not all commercial properties are created equal, and some perform better than others. There are five main sectors when it comes to commercial real estate: office, retail, multifamily, industrial, and special purpose such as storage units, and hotels. As you might imagine, a modern hotel located in the heart of New York City would yield a much higher margin than say a motel located off the interstate highway.  

Research Areas of Interest 

Location, location, location! It cannot be stressed enough that you are as aware as possible of the surrounding areas you want to invest in. How is the economy performing? Is it in a high-risk natural disaster area? What are the crime rate and history? It goes without saying that simple factors such as this not only will impact your ROI but also how much you should expect to pay out for insurance purposes, etc. 

Be Aware of Market Cycles 

Even in the most booming of economies, production and growth tend to slow down and plateau out eventually. Keeping up to date on current market trends can help you to know when the best times are to buy, as well as when to sell. 

Respect the Due Diligence Process 

It’s easy to get excited when investing in real estate, and forego some critical steps in the research process. But patience is a virtue in this aspect, as overlooking important details in financial documentation can prove to be a detrimental mistake to your future investment. Don’t rush through it, and if necessary, contact a legal advisor for advice. 

Be Prepared for Potential Setbacks 

Uncertainties are almost a given when it comes to deadlines, cost contingencies, and other various obstacles. Even with all your ducks in a row, it’s inevitable that something usually does not go as planned along the way. Consult with your BT84 Commercial Capital & Business Solutions to help minimize any unexpected bumps along the way to investing in commercial real estate.