Article: Abnicholas.com

Commercial Real Estate Investing

Commercial real estate investing is putting your money in commercial properties like shopping centers, hotels,

mobile home parks, retail properties, office buildings, educational buildings, apartment complexes,

warehouses, manufacturing facilities and other commercial income properties. It represents a better way to

make money from properties if one knows how to invest smartly and correctly. Commercial real estate

investments require a large amount of patience, thorough planning and determination. In fact, those investors

who are beginners should avoid this type of an investment strategy. On the other hand, experienced investor

can always proceed for this investment since the competition in this market is much lesser than the residential

real estate investment.

There are just a handful of commercial real estate investors who can really afford properties of this scale. In

this type of investment, the potential and real return increases. This industry deals at a much larger scale than

residential real estate investment. Prior to putting your hard-earned money into a deal, update yourself well in

the comings and goings of this world so that you are always aware of what you are getting into. It is advisable

to do research and educate yourself by attending investment courses, seminars or reading relevant literature.

Besides, make list of your goals and ways to achieve them.

Such property is only as valuable as it is productive. If the tenant company has immense profit, the value goes

up, if it doesn't the value decreases. But you need to remember is that value of commercial property is

assessed in a different way. Consider the following things while buying commercial real estate property:-

Affordable for average earning people: Always look for such median of property which is affordable for

average people. Avoid low end real estate which will attract an undesirable segment of the population

and costs more in maintenance.

Increasing or at least stable population: Invest in those locations where there is increasing or at least

stable population because in such areas, laws of demand and supply work in your favor so as to

increase value of your investment. Avoid those towns or villages dependent on a single industry

because if the industry vanishes or winds up so will the tenants. The more time a certain property is

vacant, the more its price will decrease.

Conveyance, market and Public amenities: Look for such area which is close to schools, public

transport, shops and good public amenities such as a library, gymnasium, post office, and parks. These

are the basic factors which ensure continued demand for property in particular area over the long

time.

Affordability for the investors: Invest in property that pays for itself that is the rental income should at

least cover mortgage repayments, management costs, local rates, maintenance, insurance and

property taxes. Always remember that the value of commercial property decreases significantly if it is

not used.

Above are few tips on how to get a good deal while buying a good investment property. Just analyze the above

tips when buying commercial real estate properties and I promise your cash flow will boom like anything. To

know more on securities based line of credit, visit Abnicholas.com

ABOUT THE AUTHOR

Article: Abnicholas.com

Nick Bentley is an expert in credit functions who also likes to write many interesting articles and blogs, helping

people to understand these concepts and take sound finance decisions. He recommends Abnicholas.com if

you wish to understand how to finance a franchise.