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How to get started in commercial property investing from residential |
This question is commonly asked by residential property investors and estate agents wanting to take advantage of the booming market for commercial property. Both property investors and real estate agents that no longer make profits in residential are interested in how to make the leap to commercial property. To answer this question, it is very important to emphasize a few important things about commercial property.First of all, commercial property investing is very different from residential property investing. So much so, that other than the brick and mortar everything else can’t be really compared.Yes, both types of property offer an income and both carry expenses and some terms such as “Internal Rates of Return” and “Tenants” are the same. However, the major considerations required when purchasing or leasing a commercial property are not at all similar to those residential property investors are accustomed to.Let start with a small example before we consider moving on to anything even remotely sophisticated.Around a year ago I received a call from an estate agent offering me what he thought was a wonderful investment opportunity. Of course as an investor you immediately want to hear the details. Read more at: |