There is a normal progression most buy and hold investors take. After getting started with a single family rental they move up to two, three and four unit properties. Eventually they become more comfortable with the additional units and look to take on bigger projects. The next step up from multiple units is commercial, apartment and mixed use properties. While this may sound intimidating managing the additional units is not that big of an adjustment if you have experience. With additional units comes additional responsibility but also increased income potential. Some of the wealthiest people in the county have made their wealth through commercial real estate. This certainly doesn’t happen overnight but the long term potential is there. If you are interested in getting started in commercial real estate here are four basic items you need to be aware of.
Prior to investing in a commercial property you should have an idea of your goals and how you plan on managing the building. Even the most seasoned investors need management help on a twenty unit apartment building. There is nothing wrong with getting your commercial start on a five unit mixed use property and building from there. Like anything else you do in real estate you should take your time and know exactly what you are getting into prior to getting too far.
Read original here: https://www.cthomesllc.com/2017/01/getting-started-commercial-real-estate/