If you’re looking for lucrative business opportunities, commercial real estate might be the right choice for you. It involves properties used as a workspace rather than a living space, utilized for business purposes only. It will require you to invest some funds to get things started, and you’ll have to be smart with your decisions. Still, it’s possible to make five, six, or even seven figures in commercial real estate.
You may want to look for a commercial building for sale by an owner, buy it, and then flip it. However, there are other ways in which you can make money. So, if you want to learn how you can make it big in commercial real estate, keep on reading!
Sell Your Commercial Property
If you already own a commercial building, you can either sell it or lease it to someone. Selling it will usually give you more money than leasing it out, but the latter is also a good option. You can lease your commercial property to a business that needs a bigger space. By doing so, you’ll get a regular payment every month. However, if you choose to sell it, you should remember that there aren’t many buyers for commercial properties, especially if they aren’t located in the most popular areas. In this case, the best thing you can do is find a buyer who plans on leasing it out.
Refinance Your Commercial Property
If you don’t want to sell your commercial property, you can refinance it instead. Refinancing is usually done with a commercial loan. Sometimes, this will involve selling the property and getting a lower mortgage rate. You could also use the money to renovate or upgrade your commercial building to attract more clients. The more space, the better!
Invest in Real Estate Investment Trusts (REITs)
Real estate investment trusts are a great way to invest in real estate without worrying about managing the property yourself. These companies manage a large number of commercial buildings and rent them out to businesses. The rent received in return is then used to pay back their shareholders. This is why people who invest in REITs have the opportunity to make 5-10% each year on average. Be smart about it, and it’ll turn out to be a substantial investment.
Find an Undervalued Commercial Building
The fact that there aren’t many buyers for commercial properties is actually an advantage for you. There are plenty of opportunities for finding undervalued commercial buildings. The best way to find them is by using different websites online that list these properties for sale. You should look for ones that are somehow undervalued and don’t seem like a good investment because they might be just what you’re looking for!
However, you must do your research and look into the reasons why such a building is undervalued. Maybe it’s because of its location or its terrible condition? If it’s too much trouble to make it usable, then look for something else.
Be Smart About Advertising
If you’re currently looking for commercial properties for sale, there is no shortage of options. You can also consider developing a property and selling it later on. In order to flip your commercial building for profit, you need to find people who are interested in buying them. You can do this by posting ads online or advertising in local newspapers.
Don’t forget to include all the details about the property, such as its size and location. You should also include some pictures so that potential buyers can see what kind of condition the commercial building is in. After they get interested, you can negotiate the price and set up a meeting. After they agree on everything, you can finalize the deal and start earning money!
Work As a Broker
Being a broker can be challenging, but it’s an excellent way to six- or seven-figure income. You won’t be making much money in the beginning, usually during your first year. You’ll spend this time doing your research, polishing your business plan, learning the business, creating a database, and building your book of business.
As a broker, you earn through the commission, and you don’t have to risk the capital to achieve high income. However, brokerage is not just sales – you need to work with your clients and become an integral part of their business, which is an art in itself. It’s a difficult task, but you can reap the benefits for years to come if you do it right.
The Bottom Line
As you can see, there are many opportunities for you to make money in commercial real estate. Some of them will require more funds and effort than others, and not every idea will be available for you, at least in the beginning. However, if you believe commercial real estate is the right path for you, go for it! You can start from one business venture, such as REITs or refinancing a commercial property and try other solutions later on.
Investing in commercial real estate tends to be more complicated than other business ventures. You may need advanced skills and more capital to succeed. Still, smart decisions are crucial to make substantial profits. Even if you start small, nothing is holding you back from having a diversified commercial real estate investment portfolio in the future!