Investment Properties: How To Buy Your First

The world of commercial real estate can be very exciting. Many commercial real estate investors generate more revenue fro property transactions in a year than a lot of people make working regular jobs. However, purchasing investment properties can be intimidating for a lot of first-time buyers. What do you look for? How do you finance investment properties? What do you do with real estate once you own it?

You Don’t Have To Go “All In”

Getting into commercial real estate does not mean you have to quit your current job and burn all your professional bridges. In fact, many people keep their jobs while dabbling in investment properties, or use starter properties as a means to transition away from their current careers over time. However, when people flip a house for a decent profit for the first time, or see how much supplemental income they can get from a multifamily rental – and how easy the process is – the rush can be rather addictive.

You Need A Budget

When looking at investment properties, most people work with two budgets. The first budget is for purchasing investment properties. Drive around your area and get a feel for what houses sell for, and try to find one that falls under the market value. Most times, these properties are ones that are in obvious need of serious rehabilitation. The second budget is how much capital is needed to get the property into a condition that will attract potential buyers. Conflating the two figures will give you an idea of your target expenditures, and how much of a profit margin you can give yourself without going above the price of similar properties in a given location.

Think Big, Start Small

While commercial real estate does include things like high rise hotels, hospitals, shopping centers and the like, many people earn a great deal on a much smaller scale. Purchasing investment properties like houses for flipping, and even duplexes can generate a lot of revenue. The trick is to decide which way you want to go. Flipping houses can yield a lot of profit in on fell swoop. Buying a property to rent, however, will generate steady revenue for the long run. There is no right or wrong decision.

Financing Investment Properties

Purchasing investment properties usually involves more than spare change. Besides, investors should look for financing options that take the risk out of using personal savings to fund any commercial real estate transaction. Biz Com Loans offers a wide array of affordable financing solutions for investment properties. Contact our offices today. Our team will work with you to understand your goals, and structure a financing plan to help you make your first investment property a lucrative success.

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