Real Estate Investment Real Estate Investing Guide for Beginners in Newca | Page 8

independently, so it's important to understand the range of risks inherent to your potential
investment. - Nav Athwal, RealtyShares
5. Avoid Failing Businesses Or Business Models
If your tenants include restaurants, grocery stores, bars or business models that are migrating
online (like banks), you need to assume that they will default on their lease at one point, and
you need to prepare your insurance correctly to make sure you are covered when that
happens. Search for failing businesses and do your best to not deal with them as there may
not always be a golden parachute. - Kent Clothier, Real Estate Worldwide
6. Know The Time Frame For All City Approvals
After working with more than 75 different city jurisdictions for the overall city permit
approvals, I know it can take one month or even a few years prior to receiving a building
permit. Before buying a commercial property Newcastle, set up a meeting with the local
authorities to determine the required approvals — from planning and zoning, site plan, city
council, etc. - Pamela J. J Goodwin, Goodwin Commercial
7. Understand Market Trends' Impact On Demand
It's important to understand the dynamics of the property type you are selecting. For
example, if you are looking to invest in retail, consider the near- and longer-term impacts of
e-commerce on tenant and consumer demand. If you are looking at offices, consider how
trends like co-working and telecommuting could impact demand for office space in your
market. - Gary Beasley, Roofstock
8. Be Ready To Have An Active Role
Investing in commercial real estate is not a passive investment. The most successful investors
take a very active role. They have systems and processes in place to ensure that the property
is achieving its maximum operating potential. They are constantly keeping tabs on
development and economic trends in the local market, as well as broader economic trends. -
Jay Crotty, SkyView Advisors
9. Find Capital Or A Good Deal
To be successful in commercial real estate you need two things: capital or a deal. Currently,
the market is flush with capital and if you can find an attractive deal, the equity will be there
for you. If you don't have a deal and are worried about high valuations, finding a patient
source of capital should be your priority. Lining these two items up will give you the credibility
to be successful. - Brian Milovich, Calvera Partners
10. Consider CRE Debt Instead
Some investors aren’t aware there is opportunity to invest in real estate with less risk and
greater potential return than property ownership -- through investment in commercial real
estate (CRE) debt. With returns in the range of 8-10% and a stronger standing than property
owners in the event of a market correction, this opportunity is often overlooked by those
looking to dive into CRE investing. - Evan Gentry, Money360