If you’re passionate about architecture and you have an eye for renovations, entering the commercial real estate industry is the right career choice for you. As you draft your business plan and prepare to invest in your first property, keep these tips in mind.
Focus on Connections
For your first property, you probably have to handle most tasks alone. However, as soon as possible, start building a team of renovators, real estate agents, and inspectors. By adding employees to your company, you’re able to expand more quickly and take on more projects. Commercial real estate expert Paul Daneshrad recommends hiring people who think ahead and are passionate about your company. Working well with these team members is essential to your success, so get to know them personally and find out what strengths they offer.
Until you have the to create your team, focus on networking with other people involved with your commercial real estate investment. For example, get to know the business owners who rent your properties and the county officials who inspect them. You never know when you’ll need help from one of these professionals.
Stay Focused on Your Goal
When you find a property that you really like or that fits perfectly with your client’s needs, it’s easy to become so excited you forget your purpose. While it’s good to be passionate about your job, don’t let your emotions get in the way. For example, some real estate investors fall in love with properties and are so impatient to own them that they skip steps such as inspections. Even when a building looks completely sound on the outside, you have no guarantee that it’s free of asbestos or lead paint until the inspection is over. As a result, always prioritize the value of your investment over your emotions.
Work With Your Budget
Your budget changes as your company grows; the more properties you’re collecting rent on, the more capital you have to spend. Be careful not to overspend, even when it seems as if you have a huge surplus. Instead, work with your accountant to create a reasonable budget, and then reevaluate it every time you acquire or sell a property. Remember, flexibility is key for planning your budget, and strictness is key for following it.
As you get ready to dive into the commercial real estate industry, keep these business tips in mind. Then, start searching for your first property.