Residential and Commercial Real Estate are not the same and a lot of the time brokers who’ve started their career in residential think the jump from one field into another will be an easy transition. This isn’t always true, both residential and commercial are quite different and they both require a different processes in order to complete a successful transaction.
Let’s take a dive into the “10 Things To Consider Before Investing in Commercial Real Estate” straight from 10 members of Forbes Real Estate Council.
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Remember Everything Takes Longer
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Understand The Market
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Consider Area Demographics and Trends
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Assess Risk By Property Type
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Avoid Failing Businesses or Business Models
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Know the Time Frame For All City Approvals
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Understand Market Trends’ Impact on Demand
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Be Ready To Have An Active Role
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Find Capital Or A Good Deal
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Consider CRE Debt Instead
These are just a few of the many things worth considering before you consider to dabble in commercial real estate investing. Remember that each scenario differs according to the market and asset type you are dealing with – when possible consult with a seasoned CRE veteran who can give you an inside scoop on the market and its current conditions.
To read the full article, visit www.forbes.com