How to Invest in Commercial Real Estate

You’re probably very familiar with residential real estate investing.

After all, over 60% of Americans will own residential real estate in their lifetime.

Why?

Because real estate can be one of the best investments anyone could ever make thanks to the cash flow, appreciation, and tax benefits.

But maybe you’re not as familiar with how to invest in Commercial Real Estate.

Commercial real estate surrounds you in your day to day life - apartments, office buildings, shopping centers, hotels, warehousing and so much more.

Essentially, any property intended to generate income that isn’t a single family home.

Investing in commercial real estate typically takes a savvier investor due to the capital, expertise, and time involved in making a deal successful.

If you’re interested in investing in these types of assets, you’ll need to dive into the world of commercial real estate.

  1. Familiarize yourself with the lingo - such as NOI, Cap Rates, NNNs. These terms are used quite often and you’ll want to understand what a potential seller or broker is talking about when you’re reviewing a deal.

  2. Assemble a team to help you fill in the knowledge gaps you may have. This team can include a commercial real estate attorney, a commercial builder, a commercial real estate broker, and other investors who may act as a mentor to you through the process.

  3. Stick to your investment criteria and don’t give up! I’ve analyzed dozens and sometimes hundreds of potential investment deals before finding one that fits my investment criteria.

So there you go for How to Invest in Commercial Real Estate. Stay up to date on everything blog we post by subscribing to our newsletter.