Commercial real estate investing is a great strategy to build your assets and earn passive income. However, if you are just starting out, you’ll quickly find there is a lot to learn to be truly successful. At Titan Lafayette Real Estate in Lafayette, our knowledgeable team helps both seasoned and first time commercial real estate investors. We can help you through every step of the process to ensure you achieve your goals. To get you started here are some of our pro tips for first time investors:
Make A Business Plan
As with any financial venture a business plan is essential. A business plan will not only provide a roadmap and outline your strategic approach, it can also help you get further funding. When raising capital for your commercial investments, a business plan can help investors feel confident they will see a return. Further, while you are developing your business plan, you will learn more about the market, your customers, and your competition. This valuable information will help you make smarter decisions about your investments.
Clean Up Your Credit History
The most attractive investments are de-risked. Our credit scores are a reflection of our financial behavior. If we engage in riskier financial behavior like having a very high debt to income ratio, it can be a significant turn off to investors. So take some time to really dig into your finances to see where you can make improvements. This will open up the market for you and as a result, give you a higher chance of making a successful investment.
Understand The Options
Knowledge is power when it comes to investing. So the more you learn, the better. You may have a specific type of commercial property in mind when you begin your investment journey, but as you learn things may change. There are multiple types of commercial properties available. Each offers a different opportunity, business model, and revenue stream and structure. Investigating all your options will help you select the type of property that best meets your needs, interests, and long-term goals.
Focus On The Lifetime Of The Investment
Buildings do not stay in great condition forever. Over time they begin to deteriorate and critical utilities begin to malfunction. Maintaining a building will eventually begin to cost more and more over the lifetime of the investment. Understanding how and when this begins to happen can help you determine when it’s a good time to sell your Lafayette commercial property investment. When you invest, make sure to think about your investments in the longer term and not just in terms of upfront revenue.
These are just some tips to get you started. At Titan Lafayette Real Estate, we can help you with even more tips. We love helping first time investors find the perfect property to start them on their path to success. Give us a call to learn how we can help you with your commercial property venture.