With many Americans now realizing they cannot depend on the government to take care of them in aging, investors are currently turning commercial real estate investing as they know it’s time to confront the challenging reality that it’s time to care for their very own financial futures. While some may wish to be “rich,” others see financial independence as a necessity when it comes to enjoying and surviving their retirement years. Savings accounts grow very slowly, as do bonds, in order to produce the growth and income most investors seek for their retirement portfolios. Smart investors tolerate risk and volatility in search of the higher returns that will help their nest eggs hatch and grow into cash cows.
One asset class which has traditionally met these goals is the stock market. Low-fee, high growth mutual funds have an excellent track record relating to long term returns. However, green towers feel frustrated by the sense that there is nothing they’re able to do to improve the overall performance of the stock of theirs and mutual fund portfolio.
That’s why investing in real estate makes so much sense.
Many investors dip the toes of theirs in the water with a couple of rented homes or perhaps a small apartment building. That’s a great spot to start building wealth and learning the commercial real estate industry. However, for investors looking for serious retirement income that can be relied upon to develop in a hands-off portfolio, commercial property certainly has its place.
Commercial property for beginners is not an issue to be entered into lightly. It is difficult to read a book or talk to a broker and really understand anything and everything that is involved in producing and financing a good real estate deal, after which managing the property of yours once you have it in place.
I do believe the 2 best methods for beginners to get involved in commercial property are to a) Work their way up through the ranks of owning smaller properties or b) Work with a mentor of some kind – ideally another property owner in the marketplace of yours – to figure out what they do, the way they do it, and the reason they do it. You are able to find a lot of salesmen trying to help you started in commercial property by buying their magical business-in-a-box but their claims of simplicity from just adhering to an easy system are often over-stated. You can get yourself into a lot of warm water in commercial home buying as a beginner new to the business, so in case you can’t pay for to make a mistake, it is better to grow slowly as well as pay the dues of yours. When you do dip the toe of yours in the water, let the voices of experience guide you as well as check with your other, CPA, and attorney investors in your area that will help you confirm you are on the correct track.
If you need additional commercial property strategy coaching from someone who is acquainted with commercial home buying, although not “vested” in seeing you come through with a certain outcome, consider hiring a professional property consultant.
My business partners at The true Wealth Company are financially independent and living off of their property income. If you’d like to talk to them to find out exactly how they do their business, and get tips on how you can improve your operations, they’re offered on an uncomplicated pay-as-you-go system and really get a kick out of advising the clients of ours and seeing them buy their first commercial real estate property.