How to Find the Best CRE Investment Opportunities
Investing in commercial real estate (CRE) can be an extremely lucrative undertaking if you go about it the right way. There are many different ways to take advantage of CRE investment opportunities these days (i.e., it’s no longer solely reserved for those with an excess of money). In fact, there’s really no reason you shouldn’t at least consider it as a part of your portfolio. That being said, having a keen understanding of what makes a good investment property and how to find one is imperative to your success.
The first step in securing your CRE investment opportunity is to get clear on your budget. How much do you have to put toward your initial investment? If it’s not a substantial amount, are there friends, colleagues or family members who might want to contribute and embark on the investment journey with you? If not, perhaps you can look into crowdfunding options that will help you to get a piece of the pie and slowly amass enough profit until you do have a lofty amount to put toward your own solo investment.
Consider a Mentor
The commercial real estate game is constantly changing, particularly as the economy goes through its inevitable ebbs and flows. In order to be well-versed in real estate investment, it might pay to enlist the help of a trusted mentor. Make sure that this person is familiar with your local market. A mentor will be able to show you the ropes, educate you on the different types of investments, help you determine the best times to find great deals, teach you where to look and also, potentially introduce you to a broad variety of other people who will benefit you along your path, which brings us to our next point.
Creating a strong network of professionals is imperative to finding a great commercial real estate investment opportunity. Building relationships with successful realtors, for one thing, could give you access to off-market deals that you might not otherwise be privy too. The real estate world is tightly woven and those who are in the know tend to land the best investment opportunities which, in turn, lends to their ultimate success as investors.
Find a Desirable Location
Whether you work with a mentor or not, it will be extremely important for you to determine where the best locations are in your area for commercial real estate. Depending on the sector of the market that you are planning on investing in, the needs might vary a bit, but as a general rule there are a few things you will want to look for. Commercial properties should be easily accessible, generally located within close proximity to major roadways, public transportation and airports. You will want to look for a property that has good visibility, allowing tenants access to foot traffic and passerby who may be in need of their services. Additionally, you will need to find a location that is properly zoned for the type of property you are planning on investing in. Most communities have strict rules and regulations regarding commercial zoning.
Consider the State of the Structure
Finding a commercial real estate property isn’t just about considering the asking price. If you find a great deal but the building needs a whole bunch of extra work, you might find yourself asking whether or not it was such a great deal after all. Having a professional inspection done is an absolute must. This will help you to determine if there is structural damage or if the space needs any costly repairs or upgrades in order to make it ready for tenants. If you are a new investor on a tight budget, avoid auctions or other sales techniques where you could be pushed into purchasing a property sight unseen.
Consider Multifamily Properties
Even if you are a new investor, multifamily is a great place to begin! It may seem daunting to consider managing more than one space, but this type of commercial property offers a high return on investment! Start small by looking at properties with two to ten units, as opposed to diving off of the deep end and purchasing a property with hundreds. Give yourself some time to get your feet wet and then see where it takes you!
Looking for CRE Investment Opportunities?
If you’re ready to begin investing in commercial real estate, there’s no time like the present. The team at SVN | Southgate Realty, LLC is excited to help you do just that. We’ve put together a database full of some of the best commercial properties in the Hattiesburg area and we know we have great CRE investment opportunities you should consider. Take a look today and then reach out to one of our associates to get going!