How do you get started investing in commercial real estate income property? Use these 7 tips to help you get started earning a steady monthly income through commercial income properties.
2. 1 Make A Plan
7 TIPS FOR REAL ESTATE INVESTORS
Decide what your real estate investment goals
are. What do you want real estate investment to
help you achieve?
Next, write down specific short and long-term
goals. How much cash flow would you like your
investments to bring in? What types of real
estate would you like to invest in? And what is
your time frame for accomplishing those goals?
3. 2 Know the Market
7 TIPS FOR REAL ESTATE INVESTORS
If you're new to real estate, one of the best ways
of ensuring success is to make sure you keep on
top of what's going on in the field.
There's plenty of information available out there -
much of it free. Check out home prices either
online or in your local newspaper. Go to the bank
and get specific numbers on loan volume and
down payments. You can even visit homes that
are similar to one you plan on listing.
Tip to Successfully
Choose Your Market
1. Choose a market
near you. Most new
real estate investors
should choose a
market that is a short
distance from where
they live.
2. Network.
Connecting with other
investors in your area
is a great way to not
only learn about real
estate, but also to
keep track of trends
in your area.
4. 3 Find Help
7 TIPS FOR REAL ESTATE INVESTORS
What resources can you access that will help
you accomplish your goals? Who or what can
you access in order to help you achieve your
goals?
Shorten the learning curve by finding a friend,
advisor, or mentor. Real estate investment can
be challenging, and a supportive ear can play a
large role in your success.
5. 4 Make Sure You Diversify
7 TIPS FOR REAL ESTATE INVESTORS
Diversifying your real estate investments is a
good way of mitigating your risk. Instead of
relying on one type of investment, a diversified
portfolio consists of various properties that
include high, low, and medium risk properties.
In the event that one type of income property
fails to yield the expected return, your portfolio
can still make a profit.
6. 5 Be Patient
7 TIPS FOR REAL ESTATE INVESTORS
While some tactics, like flipping, claim to be an
easy way to quick money, they're also risky.
Most real estate strategies aim for medium to
long term returns. Rather than jumping in
headfirst for fear of missing out on "the deal of a
lifetime," take time to investigate all aspects of
the real estate transaction, and get second
opinions when possible.
7. 6 Consult With An Accountant
7 TIPS FOR REAL ESTATE INVESTORS
There's nothing worse than being hit with a
large, unexpected tax bill. An accountant
experienced in real estate investments can help
you make sense of the constantly evolving tax
code.
Because taxes are an integral part of all income
property, having an experienced accountant on
board can make the difference between making
a profit and taking a significant loss.
8. 7 Make Sure You Can Afford It
7 TIPS FOR REAL ESTATE INVESTORS
Before you buy a property, always make sure
you can afford to buy it. Keep in mind that
"affording a property" involves more than being
able to pay the initial cost of the property itself.
While you might be expecting the cost it takes to
maintain your new income property, the cost of
taxes or insurance for that particular property
might tip the scale from affordability to disaster.
You need to be honest with yourself about what
your cash flow needs are. Will you be able to
make up the difference if the property stands
empty for a month or two? What will you do if
property values go down, but you need to
continue paying a mortgage at the higher price?
9. Questions?
7 TIPS FOR REAL ESTATE INVESTORS
Still not sure what's best for you?
Contact an experienced real estate broker at
Westwood NetLease Advisors. You'll get a free
3o minute consultation, and solid advice on how
to get started investing in your income property.
Visit our site for more information on commercial
income property.
10. Questions?
7 TIPS FOR REAL ESTATE INVESTORS
Still not sure what's best for you?
Contact an experienced real estate broker at
Westwood NetLease Advisors. You'll get a free
3o minute consultation, and solid advice on how
to get started investing in your income property.
Visit our site for more information on commercial
income property.