Commercial Real Estate Investing – Commercial Real Estate Success Training

Commercial Real Estate Investing

By Andrew Williams | Commercial Real Estate Investing

May 16

Do you want to invest in a place, where you can make a large amount of money? Commercial real estate provides an opportunity for people to earn large amount of money, as compared to investing in residential rentals. It also attracts a large number of investors due to its attractive leasing rates. Here is how you can also become a successful real estate investor:

WHAT IS COMMERCIAL REAL ESTATE?

The commercial real estate comprises of properties that are solely used for workspace. Office buildings, malls, and warehouses, all are part of commercial real estates. Commercial properties have an advantage for investors that they can expect a huge amount of rents.  Apartment Buildings are considered commercial properties as well. Thus, it gives you a good opportunity to make fortune.

HOW TO INVEST IN COMMERCIAL REAL ESTATE:

Commercial properties are no doubt good site for investing. But, the question is how to invest in commercial real estate to make the profit? There are few things that beginners need to understand while investing in commercial real estate:

  • Commercial real estate properties are valued according to square footage that can be used
  • Location is very important. Before investing your money try to gain an idea whether the property is in demand or not.
  • You can either buy the funds that hold the property or you can also buy the property itself.
  • Compare the alternatives in the same area.
  • In order to be a good investor, you need to get familiar with key metrics. This will help you calculate the future outcome of your deal:

1.    NET OPERATING INCOME

The net operating income is calculated by subtracting first year expenses from the first year net income. In order to have a successful deal, you need to have a positive net operating income.

2.    CASH ON CASH

It is used to compare the first year income of competition properties. It is mainly used by investors who rely on financial support from 3rd party.

3.    CAP RATE

Cap rate is used to calculate the potential return of money that is expected in the future.

WHY INVEST IN COMMERCIAL REAL ESTATE:

There are many reasons why investing in commercial real estate is better than investing in residential areas. Some of the reasons that will make your mind are:

•    Attractive lease rates:

Commercial real estate consists of attractive lease rates. This means you have a better chance of making a good fortune.

•    Rental rates

The rental rates are determined by square foot of area that can be used.

•    Flexible lease terms

Lease terms are flexible and longer.

COMMERCIAL REAL ESTATE SUCCESS TRAINING:

Commercial real estate success training can help you learn how to invest in commercial real estate. It helps you learn how to make a deal. In addition to this, it also helps you learn how to make most out of your deal.

The commercial real estate comprises of properties that are used for work. It provides a better chance for investors to earn money. There are few things that should be kept in mind in order to make a good investment.

About the Author

Andrew Williams is a commercial real estate investor and the President of Commercial Real Estate Success Training “CREST” which is dedicated to the education and success of individuals and companies across the United States.

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