Metro1 Logo

Want To Break Into Commercial Real Estate? You Must First Build Credibility!

November 4, 2016

So, you want to dive right into a juicy multimillion dollar commercial real estate deal, but you don’t have any experience? As a consequence, you may not be taken seriously by sellers, brokers, investors, and other real estate professionals. This can make it difficult for you to get your first deal done. So, what do you do?

It helps to start with what you are familiar with. And, it really helps if you are familiar at all with residential real estate. Many people nowadays are not seeing the return on investment with residential real estate as they have in the past, due to an overpriced and competitive marketplace. So, how as an investor can you break into the potentially lucrative world of commercial real estate? Well, it certainly helps to know that the commercial and residential real estate markets are, on paper, seemingly similar. However, the nuances and the specific ways you can earn money in commercial real estate when compared with residential real estate can vary widely.

For example, in CRE, it’s very common to charge a tenant for maintenance to the building, for utility charges, for water charges, or for cleaning common areas. In the residential real estate market, you are most likely not going to charge your tenants on top of their rent for any other common maintenance services. This is just one thing to keep in mind if you are considering getting started in commercial real estate.

trust-and-credibility-sticky-note-metro1-blog

Here’s how to get your foot in the door in CRE

One common point of entry is to buy a commercial asset, occupy a part of it, and then bring other complementary businesses to the space. With commercial real estate, it’s very easy to build a community that complements each other. Therefore, it’s useful to establish symbiotic relationships where companies can do business with one another.

However, one thing you will likely notice in a specific market with commercial real estate is that there are typically many more residential properties for sale. This means that, as an investor, you have to be much more selective. You have to be willing to do a lot of research and you must take the time to find the right property to become successful. Additionally, it pays to learn the lingo. Educate yourself by reading relevant books, researching as many deals as possible, meeting other investors, and speaking to brokers. You will feel much more comfortable when discussing deals and you will most likely convince those sellers, investors, and other real estate professionals to take you seriously.

A simple and cost-effective way to build credibility is by launching a website. This will immediately establish your digital presence and will easily allow people to learn about you and what you do. This is an extremely effective way for you to be perceived as more credible. Plus, creating a website is easy, literally anyone can do it, and it is relatively inexpensive.

real-estate-team-modern-office-building-downtown-metro1-blog

Are you considering getting started in commercial real estate in South Florida?

If you are considering getting started in CRE, then it is time for you to get creative. For a single-family home, a duplex, or something similar – it pretty much is what it is. There’s not much shifting you can do besides replacing countertops or painting. If the property was built as a 2-bedroom apartment, it will always be a 2-bedroom apartment unless you make really drastic changes to the space. However, with a commercial space, you can do a lot more creative work to make it meet the market that it is in.

Commercial real estate in the greater Miami area can be a great investment opportunity. But, obviously there are always risks. Make sure you avoid any pitfalls by putting in the time and effort to ensure that you get started in the right direction with your foray into the world of commercial real estate. Take a look at the market that you are looking to get into and ask yourself what does this market need from a business standpoint. Then, figure out how you can meet that market’s need. If you have additional questions about CRE in general, or if you have are interested in a particular property listed at Metro1.com, call us today on (305) 909-6775.

Call Us Now