Whether you want to generate supplemental income from a single rental property or if you are looking for a new career as a real estate investor, the world of investment properties has many lucrative opportunities. Yet between the various strategies, terminology, and advice from every direction, getting a head start can seem intimidating. We have put together this overview to demystify the investment property market to show you how much simpler and more accessible it really is.
Think Big and Start Small
When people think of investment properties, most think of large office buildings or hotels. The truth is that most commercial real estate investors start out with smaller, more manageable projects. New commercial investors generate income by flipping houses or renting out duplexes. Some people put the revenue generated from those properties directly in the bank, while others set aside a portion to expand their portfolios and move on to acquire larger commercial investments.
Networking is Key
When dealing with investment properties – as with most things in life – who you know is a big part of getting things done. Unlike other industries, commercial real estate is not a field that can be run with a few clicks of a mouse. There are benefits to talking with sellers, brokers, wholesalers, property managers, and others who can give insight on where to buy, and submarket trends. These people are typically open to questions, and since a good portion of commerce in the commercial real estate industry is done through referrals, getting to know people can pay off in a big way.
Don’t Stop Researching
Nothing is static in the commercial real estate arena. Property values fluctuate. Homebuyers look for specific qualities in properties. Economic incentives can attract businesses looking for certain properties to grow their operations. Something as simple as a state tax break for rental properties can set off a chain of revitalization that boosts property values and draws in new businesses and residents alike. Staying on top of data is how property investors stay ahead of the competition and grow their income.
Financing Investment Properties
Most new property investors do not purchase, renovate, or build by using their own capital resources. Instead, they use financing programs designed specifically for commercial real estate transactions and projects. At The Capital Rams, we specialize in financing solutions for property investors at all levels. Contact our offices to learn more about the wide range of options we offer, and get your investment properties financed.