Commercial real estate investment can be an incredibly lucrative market, but if you’re new to the industry, it can be difficult to know where to get your start. There’s a lot of research one must do and information one must attain before being ready to start investing, and without proper guidance it can feel incredibly overwhelming. However, with just a few basic steps you can build yourself a strong foundation from which to begin to grow your CRE business; here are some tips to get you started.
Familiarize yourself with the terms and metrics
Like any industry, real estate comes with its own set of jargon and systems for measurement, and if you aren’t familiar then your head is going to be spinning before you start. Prepare yourself and make sure you have the language of CRE down pat before you start tossing your money into investments; otherwise, you might find you’ve put your money in something you didn’t want to simply because you didn’t understand the terms that were discussed. You also need to make sure you understand that commercial real estate is a vastly different beast than residential real estate; for starters, it’s more difficult to get financing for commercial property than residential property, and the amount of rent charged for commercial properties is measured differently as well. Familiarize yourself with the real estate industry in general, but make sure you have a firm grasp of what goes on in CRE.
Get up-to-date on industry knowledge
One thing that separates those thriving in the CRE investment industry and those floundering is oftentimes experienced insider knowledge. Those with tenure in the industry have accumulated knowledge and insight from their years being involved with real estate that can give then the upper hand when it comes to things like spotting a lucrative deal. To avoid falling behind, find some acquaintances and mentors within the industry who can offer you wisdom and advice. Networking is key in this industry, so start building your professional network as soon as you’re able. This will not only proffer you the wisdom and insights of someone more experienced, but will also be invaluable when it comes to seeking advice from others in the industry.
Once you’ve built yourself this foundation, there’s still a lot more to learn before you’ll be ready to invest for yourself. You’ll need to identify potential investments and build a team that will be able to help you execute the deal. Knowing which properties are hot, which will lose you money, and which have potential to offer takes practice and skill, but once you get a feel for it you’ll be well on your way to building yourself a lucrative career.