How to Buy, Renovate, and Profit Off of Commercial Real Estate
Over the past few years, the real estate market has been on an upturn; a complete shift away from the early-2000s real estate housing bubble that saw one of the largest declines of all time. If you are looking to start buying property and investing in it to turn a profit, then now is a great time. Residential real estate is a good option, but commercial buildings have the potential to generate a lot more profit. Below are some quick tips regarding the best ways to buy, renovate, and profit off of commercial buildings such as apartment complexes or strip malls.
Timing and flexibility are key in buying the perfect commercial property for you to invest in. Before you begin looking, you should know that the process of searching for and investing in commercial properties is far more complex than the process of purchasing a residential home. You should buy books and do a lot of online research into the risks and rewards and buying process for commercial real estate. If the learning curve is too much for you, you can hire a realtor that specializes in commercial real estate investments. This expert will advise on when to buy and will let you know which properties are worth investing in. As a general rule, though, you should aim for fixer uppers below your budget so you can invest money in updating or changing the property to run better.
After you successfully close on your commercial property, it is always an option to throw a new coat of paint on your new apartment complex or strip mall and keep all of the previous structure and finishings. However, if you bought a bargain property, it is likely that you will need to do some construction to make your commercial property profitable- often a fresh coat of paint is not enough to being in fresh clients or please current ones.
If you are having trouble figuring out what renovations you should make to transform your new commercial property, you can consult a commercial general contractor for help. From there, you can brainstorm different options and look at several blueprints without having to come up with every single detail yourself. Remember, appearance is everything and if adding an extension or building a new arch-way or adding granite countertops will increase your commercial property’s appeal, then it is a worthy investment.
If you want the most profit for the least amount of effort, then you should consider hiring a property manager. Of course, this will cost you money, but if you have a property manager you will almost never have to be present on your property for it to continue running. Property managers take care of all the hard work like maintenance requests and client inquiries. In this way, you will have a steady cash flow coming in from owning these properties without really having to deal with any of the hurdles associated with running a commercial property.
If you are looking to invest in commercial real estate, remember to shop with the help of an expert, renovate with a good company, and employ a great property manager.