Ask any real estate professional about the benefits of investing in commercial property and you'll likely trigger a monologue on how such properties are a better deal than residential real estate.
Commercial property owners love the additional cash flow, the beneficial economies of scale, the relatively open playing field, and the abundant market for good, affordable property managers and the bigger payoff from commercial real estate.
Learn What the Insiders Know
To be a player in commercial real estate, learn to think like a professional. For example, know that commercial property is valued differently than residential property. Income on commercial real estate is directly related to its usable square footage.
That's not the case with individual homes. You'll also see a bigger cash flow with commercial property. The math is simple: you'll earn more income on multifamily dwellings, for instance, than on a single-family home. Know also that commercial property leases are longer than on single-family residences. That paves the way for greater cash flow.
Lastly, if you're in a tighter credit environment, make sure to come knocking with cash in hand. Commercial property lenders like to see at least 30% down before they'll give a loan the green light.
Map Out a Plan of Action
Setting parameters is a top priority in a commercial real estate deal. How much can you afford to pay? How much do you expect to make on the deal? Who are the key players? How many tenants are already on board and paying rent? How much rental space do you need to fill?
Learn to Recognize a Good Deal
The top real estate pros know a good deal when they see one. What's their secret? First, they have an exit strategy – the best deals are the ones where you know you can walk away from. It helps to have a sharp, landowner's eye – always be looking for damage that requires repairs, know how to assess risk and make sure to break out the calculator to ensure that the property meets your financial goals.
Locate A Commercial Finance Expert
Commercial real estate investors have been turning to Winston Rowe & Associates for their national hard money bridge loan programs that have no upfront or advance fees.
A key benchmark of Winston Rowe & Associates is they can provide a solution to clients within days, not weeks or months.
Many of their clients find this extremely advantageous when they are considering opportunistic investments or in need of a discount pay off of their current commercial loan.
The goal at Winston Rowe & Associates is to add value to client’s acquisition or refinance by offering a wide range of financing solutions and direct access to top national, regional, and local retail banks, hedge funds and private capital lenders.
If you would like more information about inston Rowe & Associates, give them a call. A principal is always ready to speak with prospective clients at 248-246-2243, or visit them online at http://www.winstonrowe.com