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Commercial Real Estate Investing

I've said it once and I'll continue to say that one of the foundational principles of Suite 527's mission and vision statements is education. Education is the first step to wealth building and one of the most financially rewarding real estate ventures is investing in commercial real estate. Many individuals throughout history have built their wealth through this avenue and you can begin creating different streams of income too.

Commercial real estate is broken down into about five different categories, office, retail, industrial, multifamily, and special purpose, each is a specific property type with varying operations. Office spaces range from doctor's offices to skyscrapers, industrial facilities are usually large warehouses or manufacturing spaces (think Amazon or Tesla), schools and churches fall under the special purpose category. Each category yields different levels of dividends depending on the area and one of the most important things to understand about commercial real estate is it goes in cycles. Ebbs and flows are anticipated in any investment so make sure you have a competent real estate professional who can guide you through understanding those financial flows.

Another important piece of commercial real estate investing is capital and contingency. No matter how much advice, instruction, and education you get there will be financial setbacks when investing in anything. A way to conquer these setbacks is to make sure you've got additional funds (what my aunt used to call "under the rug money") banked for those rainy days and altered timelines, it'll hold you over in the future. Also, it takes money to make money is as true as it is catchy. Upfront dollars will be needed for any commercial property you choose to invest in.

Lastly, learn what commercial real estate investment avenue works for you, and your situation. There are many different ways to become an investor that don't require you to purchase and manage physical property. Mutual funds, stocks, investments trusts, funding real estate investors, and crowdfunding are just a few alternative ways for you to get your feet wet without taking the plunge. Just beware of schemes and scams when doing so, and always remember, with any investment comes risks so govern yourselves accordingly.

Use this guide to start thinking about investing and don't be afraid to reach out to Lenetta DeLacy-Johnson to schedule your commercial consultation today.

Photo by Nastuh Abootalebi on Unsplash

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