4 Essential Tips for Commercial Real Estate Investors
If you’ve recently entered the commercial real estate investment sector or are considering whether real estate investing is right for you, take time to read these essential tips. By following these basic guidelines, you’ll realize success as an investor.
The time to invest is now
If you’re waiting for just the ‘right time’ to invest in commercial real estate, you’ll miss opportunities. There is no perfect time. Put startup money down on properties priced reasonably. Keep your initial foray more manageable by purchasing one or two properties. You’ll see your investment appreciate, giving you more cash to make additional purchases.
Don’t wait too long to go big
After your initial investment begins producing income, consider adding larger properties to your portfolio. You’ll realize faster growth, and compared to the stock market, will have tangible assets that remain valuable even if the stock market experiences a downturn.
Let your investments grow
If you’ve purchased commercial real estate in a desirable or growing area, you’ll likely see demand (and property values) increase quickly. Don’t be hasty about selling, because populated or popular areas aren’t likely to lose value in the near term. Review real estate forecasts to help you decide the best time to sell and get a larger return on your investment.
Invest with a Self-Directed IRA
When making a commercial real estate purchase with retirement savings, consider a self-directed IRA. This type of Individual Retirement Account gives you the freedom to invest in real estate instead of the stocks, bonds, certificates of deposit or mutual funds that traditional IRAs require. And an IRA option means you invest without using your taxed income.
The real estate market experiences fluctuations but is a strong investment opportunity. Unlike stock, real estate purchases can be made with less than 100% of the price, the properties provide income and increase in value.
The team at Artemis Commercial Capital offers several commercial real estate financing programs. Contact us today to find the right solution for you.