Do you worry that you don’t have a diversified portfolio? Are you concerned about stock market trends and wish to add commercial real estate to your investment strategy? Would it fill you with joy to have tangible real estate assets that you can visit?
We want to help! While our clients come to us with various reasons why they are interested in commercial real estate investing, the how remains the same. Frontera Capital Partners will provide you with commercial real estate and related investment opportunities by using our more than six decades of combined experience. In addition, you will feel good about investing your money with Frontera because we personally invest in every deal we recommend to our clients.
While we are certainly ready to meet with you to discuss growing your commercial real estate portfolio, we would like to offer these general guidelines to help those new to the commercial real estate industry.
Guidelines of Commercial Real Estate Investing
If you are interested in using commercial properties as an investment vehicle, here are some things to consider.
Learn as much as you can.
If you are serious about obtaining your financial goals, you need to be a dedicated life-long learner. Listen to podcasts or audit college courses. Read the best books on commercial real estate investing. Understand the vocabulary of the business, such as cash on cash return, debt service coverage ratio, hard money loans, and triple net lease. Finally, do whatever you can to learn how to choose a commercial property right for your situation.
Also, learn everything you can about commercial mortgages and determine your risk tolerance for taking out a commercial loan.
Understand the pros and cons of being a commercial real estate investor.
During your deep dive into the topic, you probably read about the positive outcomes of commercial real estate investing. For example, you are probably interested in the passive income you can earn from a rental investment property. In addition, perhaps you are excited about the tax benefits of this type of investment.
‘However, before you make such a significant financial decision, you must do due diligence to discover some of the cons of real estate investing as well. Even if a particular property seems incredibly appealing, there’s nothing certain in life besides death and taxes.
Narrow your focus.
There are a lot of possibilities in the commercial real estate market, but which of the property types appeals to you?
Perhaps you have always been interested in obtaining rental income by purchasing rental properties such as apartment buildings. Maybe you have found that developing vacant land has been highly profitable in your region. Whether you wish to invest in a particular asset class or a particular region, narrow your focus so that you can jump when the right opportunity presents itself.
Do you need a guide to assist you with your commercial real estate investments?
When purchasing commercial real estate (or commercial investment properties), seek the help of a real estate investment company that has a proven track record and a lot of experience. Contact Frontera Capital Partners to learn more about investment real estate.
