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Commercial Real Estate Investing 101

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We were recently asked who makes the best real estate investors. The fact is that anyone who has the training, process, and tools can be successful as long as they put in the time and effort.

That being said, we typically see investors who fit into one of the following categories:

Casual Residential Investor – The person who has a full-time job but has decided to begin the process of securing passive income through single-family home investment.

Experienced Residential Investor – The experienced residential investor typically has more than one property and often this is their primary source of income.

The Young Professional – This can be the college graduate or that post high school entrepreneur who does not want to trade time for dollars. Their 9-5 jobs are either not fulfilling or will take decades to rise to the position where they have a real income and prestige.

Realtors – They already know the market, after all they been the agent in many real estate transactions for many years. They now want a piece of the pie, and rather than a commission, are seeking passive income growth.

Professional Tennant – This could be a doctor, lawyer, dentist, or owner of a hair salon or establishment that rents out commercial property for their offices or a store. Tired of paying rent and not having any equity or income from it, they buy the strip mall or complex and let others pay them.

Opportunity Seekers – They have worked their lives for someone else and now want to own their future. This group Is often motivated by trying to earn money for their family to attend college, take vacations, or simply live a more comfortable lifestyle.

Retirement Enhancer - Those getting near or in retirement often find that what has been saved will not see them through their senior years. Even if a 9-5 job was available, they don’t want to go back to that grind. Retirement Enhancers are often seeking a steady stream of passive income or tax deductions to reduce their liability.

If you identify with any of these groups, you are a good candidate and should consider the advantages of commercial real estate investment. What stops most people, in any of these groups, is fear.

Fear, in this case, is actually a very good thing as it lessens your competition. Many potential investors would rather stick to other investments (stocks/bonds) or residential real estate. Both have the perception of being easier. Residential real estate has that perception since many people have been involved in personal real estate transactions.

For the entrepreneur, fear is a very valuable tool. It will propel the entrepreneur to minimize their risk by educating themselves, securing the right tools, and finding a process that has a proven track record.

What Constitutes Success?

For each group, success means something different, and they each bring to the table unique skills, abilities, and financial circumstances. That is why, at the outset of any investment program, you need to define, for yourself, what constitutes success.

Maybe your goal is paying for college, becoming your own boss, or having financial security for retirement. Find that master goal, write it down, and refer to it often. It will keep yourself true to your vision and purpose for investing.

Find the Experts

Don’t try to go it alone. Leverage the knowledge and experience of someone who has a successful track record. Avoid newbie mistakes by finding an expert, coach, or mentor to help identify and guide you through each transaction. Every activity has a learning curve. Remember the first time you got behind the wheel of a car? It was scary, and you thought you would never get the hang of it. It helped that you had a trusted person, in the form of a parent, sibling, uncle or aunt, to help you understand how to drive, obey the laws, and keep yourself from an accident the first time you merged onto a freeway.

Find a Process

Where to start? What’s the next step? Did I overlook anything? Without a well formulated process, it is easy to overlook or miss a critical element of a deal. Most of the horror stories (for any investment) arise when the investor does not have a duplicable process to follow. Don’t become that person who sits around and complains about how they lost. Stack the deck in your favor and use something that has worked over and over again.

Tools

Successful commercial real estate investors have tools that the average investor simply doesn’t have access to. This is a critical advantage. It is like trying to pound a nail into wood without a hammer. Not impossible, but getting it right is difficult.

Engage

Engage with the program, engage with the coach, and become the architect of your own success. This is one program that rewards participation and effort. Commercial real estate is often deemed to be complex and daunting. This is true of ANY new concept or program. Once you understand the elements, it becomes familiar and easier. So, invest in yourself by taking the time to learn and then executing on that knowledge.

The good news is that Commercial Academy has the people, processes and tools to ensure you are well equipped to be successful in commercial real estate, provided you are willing to engage, learn, and execute. We have a proprietary training program that has received rave reviews from our students well over the past decade. The reviews occurred after they obtained the success they identified at the beginning of their journey. Through the Commercial Academy program, you get access to the best commercial real estate experts in the industry. This expertise is found in our commercial real estate coaches and in other students who have gone through the program and have personal commercial real estate success. The tools, or the secret sauce, is what sets your analysis ahead of any one else’s. Who doesn’t want to have better background information and a complete understanding of how best to structure a deal? The right tools can make all the difference. Just ask the carpenter who left his hammer home.

Commercial real estate does not need to be feared, because everything you want is on the other side of fear. So, Face Everything And Rise. Take that first step and explore if commercial real estate investment is your ticket to succeeding at real-life Monopoly.

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