Most investors are frightened of purchasing commercial property because they suspect that it is out of their league. Some of the enormous fears include thinking that you do not have sufficient cash for a down payment, thinking that you do not know enough about commercial property, or thinking that your competition is too tough.
Fear no more, these are not true. In this article, we are going to chat about each one of these issues and explain how to overcome these fears to assist you in your journey towards success.
Fear 1 – “I don’t have enough money for a down-stroke on a commercial property, that is why I stick with residential investments.”
Truth – You do not want any down stroke. What you want is a good deal. A lot of full-time real estate investors depend on private lenders. If you find a great deal and you present the advantages to a cash rich investor who has money and is looking for a better return on their investment than they are currently getting, you can borrow their money for a down payment. Then, you can go to the bank and get a loan since you have a good deal
Fear 2 - “I have no idea anything about office space, retail centres, landlording, or property, I’m really not competent enough.”
Truth – The best businesses did not get built with only 1 person. The purpose of a CEO is to delegate tasks to the most effective person that they can imagine. You’re the CEO of your business. You do not need experience, you just need to hire a great commercial broker, a great commercial legal professional, a great property manager, and the best teammates you will find for everything else involved in making deals. Just ask Trump.
Fear 3 – “I do not have enough confidence to challenge those guys, they are miles ahead of me and will hoard all of the deals.”
Truth – There are more than enough deals to go around, particularly in a down market. Commercial property is highly dynamic. Corporations thrive, they fail, they outsource, they downsize, they lease, they sell, they buy, they die, they retire, they re-locate, they rehabilitate, you get the point. You never know when or why a seller is motivated to sell, you have to have a great system of marketing to them in order that they call YOU when they’re prepared to sell. You can learn more about how to find sellers at my article about finding apartment buildings for sale by owner.
No matter what your fear is, there’s a solution. Do not ever give up , and search hard for trustworty partners, advisors, and colleagues who you can form a mutually constructive business relationship with.
Nick Graff, CCIM helps buyers around the world find bargaincommercial property for salein America. He specializes in finding superb deals onapartment buildings for sale.