Having some commercial real estate under your belt is a great way to build a great portfolio. If you are interested in developing your net worth, you should have a healthy mixture of real estate types. Buying commercial real estate in an attractive area can add some weight to your assets and will serve as a stream of steady passive income when you rent it out to tenants that need a place to run their business. In the article below, you can get the help that will allow you to find quality commercial properties, rent them out, and have them managed by a property manager.
Look for commercial properties that can be lucrative
Your first step is to find the commercial properties that you know will give you a return on your investment. It isn't enough to simply have a piece of commercial property. If you don't use discretion about the properties that you choose, you will have a money pit on your hands that is difficult to get value from. Choose a location that gets a lot of traffic, in an area that is zoned commercial with some anchor businesses that draw in potential customers. Find a fair price so that you can gain some equity while making a profit as quickly as possible. Mixed-use properties can be worth your time because you get to diversify your tenants and bring in more revenue each month.
Enlist a commercial property management company that can serve as the landlord
While you are the owner of the commercial property, you need an excellent manager to drive revenue and take care of your investment. Commercial property management companies will help you to find new tenants and take care of all their needs. They will collect rent and advertise your commercial property to the public. Managers will also handle things like zoning permits and will keep records that will assist you if legal action is ever taken. In exchange, the property managers will retain a percentage of the revenue that is brought in from tenants.
Improve the property so that it has equity and is an attractive option for renters. Your property manager will have some advice on which additions and alterations are best for the value of the property. Hire a manager that has seen the real estate market for some years, so that you can trust their decisions.
Start with these tips and talk to some commercial property management professionals when you're ready to take the next steps.Share