6 Tips for Success with Commercial Property

YOU can certainly round out your portfolio and in hence your returns, by investing in Commercial property.

Commercial Property Success involves having a clear investment strategyHowever, it’s important to do your homework; plus, understand that the Commercial market differs from the residential property market.

And provided you undertake the necessary research, you’ll find there is great potential in owning Commercial property.

While real estate markets can go up and down … as a general rule, you’ll discover you can safely purchase well-located and well-let Commercial property at almost any time.

In fact, with most capital cities around Australia currently emerging from the bottom of a cycle … now is arguably the perfect time for you to buy.

Even so, the most successful Commercial real estate investors are those who know how to secure a good deal; but also know when to walk away.

Tip #1: Have an Exit Plan

Always have your exit strategy mapped out; and be in a position to calculate your minimum acceptable levels for your projected cash flow can ultimate growth. No matter how appealing the property may seem, do not hesitate to drop it if it will not perform to your expectations.

Tip #2: Be Flexible on Timing

Keep in mind you are buying something to make money out of it, not simply to own it. And it is also possible to make significant gains in just a few years; but this is not the main goal of Commercial property.

Tip #3: Formulate an Investment Strategy

The key here is to develop your investment strategy well in advance — allowing you to establish exactly what you want, so that you will have more time to scope out what is available to you.

A solid plan of action will provide you with many benefits down the track.

Tip #4: Make the Correct Evaluation Upfront

When just starting out, many investors will focus on the potential return, based on the actual price they pay for a Commercial property. But you should instead focus on investing in property offering you the highest return on the equity you have invested — on an after-tax basis.

And I can help you access the software you need, in order to quickly undertake that calculation.

Tip #5: Set Up Your Finance in Advance

Another important aspect is securing your line of finance, before you go looking for any Commercial property to buy. You will find it far easier to narrow your search, when you know exactly how much capital you have to play with.

But more importantly, this will also give you an upper hand in negotiations, as you’re in a position to commit immediately.

Tip #6: Know Your Neighbourhood

Make sure you evaluate the neighbourhood, as well as how the area will develop in the years to come. Location is almost always the most important key in finding the right commercial property.

And part of this is being aware of zoning ordinances and any restrictions, which could potentially impact the planned usage of the property.

Bottom Line: As you can see, most of these items would appear to be common sense. They are just a sample from an approved checklist developed over many years.

And if you would like to find more tips and strategies … simply go across here for a detailed plan about Mastering Commercial Property.


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