The Commercial Real Estate Investing Guide For Beginners
These days, Americans are all too aware that they can't depend on Uncle Sam to take care of them in retirement, and relying on their employer isn't an option either. It's time to use wits and discipline to responsibly define our own retirement options.
While some may aspire to be "rich," others see financial independence as a necessity when it comes to surviving and enjoying their retirement years. Savings accounts grow too slowly, as do bonds, in order to create the growth and income most investors seek for their retirement portfolios. Smart investors tolerate risk and volatility in search of the higher returns that will help their nest eggs hatch and grow into cash cows.
Stock market investing has historically been an excellent place to invest money. With its annual average of 11% returns since the crash in 1929, the long term compounding effect on your money can be huge! This is the type of return you need to see in order to really build wealth. Unfortunately, that's not a safe annual return like your savings account, it's a return that fluctuates - sometimes posting losses for years at a time. Some investors are just not comfortable with this type of volatility and turn away from stocks because they can't stomach the roller coaster ride.
Real estate investing is a wonderful alternative because it is something you CAN control directly.
Many investors dip their toes in the water with a few rental homes or a small apartment building. That's a great place to start building wealth and learning the commercial real estate industry. However, for investors looking for serious retirement income that can be relied upon to grow in a hands-off portfolio, commercial real estate certainly has its place.
Commercial real estate for beginners isn't to be entered into gently. It's hard to read a book or talk to a broker and really understand everything that's involved in making and financing a good real estate deal, and then managing your property once you have it in place.
There is a lot to consider when evaluating a commercial income property. It's a good idea to go slowly and seek the advice of competent legal and financial advisers. Your real estate broker is also an excellent source of information, but remember, his tendency is always going to be to push you to move forward with the deal (so he can get paid) even if it's not the best idea from a financial perspective.
You can find a lot of salesmen trying to get you started in commercial real estate by buying their magical business-in-a-box but their claims of simplicity from just following a simple system are often over-stated. You can get yourself into a lot of hot water in commercial real estate as a beginner unfamiliar with the business, so if you can't afford to make a mistake, it's best to grow slowly and pay your dues. When you do dip your toe in the water, let the voices of experience guide you and check with your attorney, CPA, and other investors in your area to help you confirm you are on the right track.
If you need additional strategy coaching from someone who is familiar with commercial real estate, but not "vested" in seeing you emerge with a certain outcome, consider hiring a professional real estate consultant. My business partners at The Real Wealth Company are financially independent and living off of their real estate income. If you would like to talk to them to see how they do their business, or get advice on how you can improve your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial real estate property.
Play it smart and look before you leap. - 23162
While some may aspire to be "rich," others see financial independence as a necessity when it comes to surviving and enjoying their retirement years. Savings accounts grow too slowly, as do bonds, in order to create the growth and income most investors seek for their retirement portfolios. Smart investors tolerate risk and volatility in search of the higher returns that will help their nest eggs hatch and grow into cash cows.
Stock market investing has historically been an excellent place to invest money. With its annual average of 11% returns since the crash in 1929, the long term compounding effect on your money can be huge! This is the type of return you need to see in order to really build wealth. Unfortunately, that's not a safe annual return like your savings account, it's a return that fluctuates - sometimes posting losses for years at a time. Some investors are just not comfortable with this type of volatility and turn away from stocks because they can't stomach the roller coaster ride.
Real estate investing is a wonderful alternative because it is something you CAN control directly.
Many investors dip their toes in the water with a few rental homes or a small apartment building. That's a great place to start building wealth and learning the commercial real estate industry. However, for investors looking for serious retirement income that can be relied upon to grow in a hands-off portfolio, commercial real estate certainly has its place.
Commercial real estate for beginners isn't to be entered into gently. It's hard to read a book or talk to a broker and really understand everything that's involved in making and financing a good real estate deal, and then managing your property once you have it in place.
There is a lot to consider when evaluating a commercial income property. It's a good idea to go slowly and seek the advice of competent legal and financial advisers. Your real estate broker is also an excellent source of information, but remember, his tendency is always going to be to push you to move forward with the deal (so he can get paid) even if it's not the best idea from a financial perspective.
You can find a lot of salesmen trying to get you started in commercial real estate by buying their magical business-in-a-box but their claims of simplicity from just following a simple system are often over-stated. You can get yourself into a lot of hot water in commercial real estate as a beginner unfamiliar with the business, so if you can't afford to make a mistake, it's best to grow slowly and pay your dues. When you do dip your toe in the water, let the voices of experience guide you and check with your attorney, CPA, and other investors in your area to help you confirm you are on the right track.
If you need additional strategy coaching from someone who is familiar with commercial real estate, but not "vested" in seeing you emerge with a certain outcome, consider hiring a professional real estate consultant. My business partners at The Real Wealth Company are financially independent and living off of their real estate income. If you would like to talk to them to see how they do their business, or get advice on how you can improve your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial real estate property.
Play it smart and look before you leap. - 23162
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To learn more about commercial real estate investing for beginners, visit their website and register to receive the video tutorial on How To Invest In Commercial Real Estate.
posted by X - Men @ 3:46 AM
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