Before you ink your first commercial real estate deal there some things that you have to do
prior. Many real estate beginners often do not the take time out to get
everything in place in regard to the deal they are trying to make. This article
will give the brief rundown of what you should you be doing before your first
Research is a big part of the commercial real estate business.
As an investor, you should be consistently researching new ideas and
tips that other professionals have. You should be researching the market you
want to invest in almost every day. The market is consistently changing, and
you want to make sure that you are always ahead of the curve.
Cold calling, looking up new properties on the internet and
sieving through public records are great ways to start your research. Word of
mouth is one the best ways to begin your research before you purchase a new
property. Most of the time having someone that is living in the neighborhood
that you want possibly invest in will give you an in.
In turn, this allows you to get in on the market on the
ground level. You now have a lot of options in the long run. You now have
someone that may know someone who is trying to sell their home. This could
potentially put you in contact with someone in the neighborhood that is a
contractor, and so on.
Also in regard to researching the property that you want to
buy, you also want to make sure that you check the insurance history of the
home. Anything you can dig up is great. Previous owners and major repairs are
usually at the top of the list of things you want to look at.
Your personal records are also something you need to look at
when in the commercial real estate
If you want to get into the commercial real estate business one thing that you want to make
sure that you get in order is your credit score. Having a low credit scot or a
credit report with red flags can be devastating when you are trying to buy a
new property. If your credit is a little shaky there are some lenders that are
willing to help you depending on the nature of your investment. On the other
hand, you could try going to a hard money lender if you need a quick loan. Most
of the time hard money lenders do not worry about the type of credit you have as
long as you have adequate collateral.
Commercial real estate
is a game of preparation
Planning your flip or your sale thoroughly is key in the commercial real estate business. Once
you figure out what type of property you want to sell; you then want to make
sure the neighborhood or heavy traffic area is right for the scope of the
business. Comb through different community blog to learn about what people want
and need in the area. Make sure you have a backup plan to your backup plan.
Having an out when a deal goes south is paramount. After all your planning you
have to be able to commit to your investment wholeheartedly.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.
Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.