Real Estate Investment Real Estate Investing Guide for Beginners in Newca | Page 7

IV.
Things To Consider Before Investing In Commercial Property Newcastle
The commercial side of real estate can be an appealing proposition for any investor. It offers
you the ability to dip into a new pool of clients and grow your business interests. But, the
commercial side of real estate is also a different beast that requires some additional
considerations versus the residential side of the business.
Patience is a virtue with these transactions as the sales cycle is longer, requiring an investor
to remain vigilant with the market demand. But many indicators point to commercial real
estate as a strong choice for agents looking to move their business forward in 2018.
Ten members of Forbes Real Estate Council shared the one thing investors should be aware
of before getting involved with commercial real estate. Here is what they recommend:
1. Remember Everything Takes Longer
Compared to residential investing, everything takes longer. Due diligence is months instead
of days. Finding new tenants takes longer. Build out or renovation is longer. But the leases
are longer, as well. Patience is key. It just takes longer. - Roger Blankenship, Flipping America
2. Understand The Market
Investors need to understand the market they are investing in. Having a good wherewithal of
the fundamentals (legal implications, competition, vacancy, rents, etc.) will allow them to
make savvy investments that could yield high returns. This will enable investors to fine tune
their commercial real estate investments and diversify their portfolio. - Juan Zaragoza, Exan
Capital LLC
3. Consider Area Demographics And Trends
When investing in commercial real estate, the investor needs to consider demographics and
trends for the area. Do they play into the reason for investing? Do you plan to develop? If so,
find a local broker who understands the area and knows the playbook of the local
authoritative agencies. You will need to understand civil engineering and environmental law
in this playbook! - Rita Santamaria, Champions School of Real Estate
4. Assess Risk By Property Type
Risk assessment is very different in commercial when compared to residential real estate, and
varies greatly by property type. The success of two residential properties right next to each
other is typically similar, while commercial buildings in a similar position could fluctuate