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Mandy Liteman
How to Invest in Commercial Real Estate Investing in commercial real estate is something that many people want to do. This is because a good commercial real estate investment can help to increase wealth through passive income generation. However, despite the fact that commercial real estate investing can help to generate wealth, it can be somewhat tricky to break into if you have never done it before. Here is a closer look at how to handle the financial and other aspects of getting started in real estate investing. Here is how to get started in commercial real estate investing 1. Get preapproved for a mortgage Unless you are already wealthy, you are going to need to finance your real estate investments. To do this, you will have to go to a bank or to another lender and apply for pre-approval for a mortgage. You will have a much better chance of getting pre-approved for a mortgage loan if you already have a good income, and if you have good credit. Speaking on this, industry expert, Michael Saperstein, of Ramer & Saperstein Real Estate Investments says “Some of the most important relationships in this industry are those with banks and other financial institutions who lend on commercial properties.” 2. Scout your property After you get preapproved for your mortgage loan, the next thing to do is to find a property that is within the budget of your loan. It is important to try to find the best possible property for your price point. You should strongly consider things such as location, structure age, condition, whether or not it will needs repairs, etc. All of these things can impact the overall ROI that you are able to generate on your rental property. 3. Purchase your desired property Once you know which property you want to buy, you will have to bid on the property and win the auction. After you do this, the property will belong to you, and you will be ready for the next phase of your real estate investing journey. 4. Purchase adequate insurance Owning a rental property can help you to make steady and significant returns. However, if the property is destroyed in a fire, a flood, etc., then you could lose your entire investment if you do not have adequate insurance coverage. You should consult reputable insurance brokers for advice on ideal policies for your property. 5. Rent out your property You can do this by placing ads directly on your property, by placing ads in newspapers, on social media, and in many other places. You can also hire a real estate to find prospective renters for you and to show your property to them. However, if you hire a real estate agent, you will have to pay him or her a commission. But this commission is often well worth it. “Real estate brokers and agents are the lifeline of the business,” says prominent real estate investor, Mark Ramer, of Ramer & Saperstein Real Estate Investments. Conclusion If you are interested in getting involved in real estate investing, then you can do so by following these five steps. Real estate investing can be very lucrative, and that is why people such as Donald Trump and Robert Kiyosaki have become very wealthy doing it. Before he was president, Trump was a renowned New York City real estate investor. Trump, along with many other NYC real estate investors such as Michael Saperstein and Mark Ramer, have done very well in the city. Who knows, if you plan your real estate investments carefully, you too could achieve success.
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Aug 3, 2018