Every day I am contacted by those working in residential real estate. I am also approached professionals from different fields such as law and medicine and other professionals who are not well-informed about commercial real property and what it really is about. If they are aware of my job they are always asking me, Why? They are quick to ask me why I am in this profession. However, I'm quick to inform them that there are many other wonderful reasons why ANYONE should be involved in commercial real estate.
Here are my top five reasons why you should be involved in commercial real estate and also yours.
The first is definitely my personal favorite, the concept of synergy. Synergy is the ability to work with the same effort and still be able to achieve better results. 1 1 = 3. This is a frequent issue in commercial realty. You will need to do the same process with all deals you are involved in, regardless of the size of the property is or what it is worth.
A deal worth $15,000,000 could take the same amount of effort as a deal worth $3,000,000! This is why I urge my team members to think bigger and go for the big shots. It is a waste of time and effort to work on low yielding deals when you could achieve the same result and earn 10x more! While I'm no engineer, this seems to me pretty obvious.
The third reason is leverage and how it can maximize the profit you earn from your properties. Always look for ways to reduce the amount you invest while earning the highest return on your property. One option is to borrow a portion of your initial investment, and then pay a percentage of the money borrowed. The total cost of your first investment can be much lower when you use other people's funds (OPM) and is a way to increase the overall profit. There are very few companies that operate in this manner, so it's certainly worth your thought.
The third reason that I decided to invest in commercial real estate was the impact I can have on communities. The creation of affordable housing and rehabilitating large, old https://jaredtnwv318.shutterfly.com/23 apartment complexes so that people are actually interested in living there, locating places that allow companies to create an audience and create jobs, and increasing the city's economic wellbeing are just some of the great motives to invest in commercial real estate! You can really have an impact on the communities you are a part of and all of us will benefit.
The fourth reason is the abundance. There are many properties, types and ways to earn wealth. Professionals are readily available to assist, as well with money that could be borrowed from other people. This ever-changing industry offers a lot to everyone. It's an exciting field to work in, offering many new and diverse opportunities every day.
The fifth reason is the different talents you can utilize in commercial real estate. This isn't the same as accounting, in which you are dealing with the same clients and math every day with very little variation. You must be creative and problem solve when it comes to commercial real estate. You will need to negotiate and it can be fun. Also, it is necessary to build connections with professionals, which can bring you closer to friends as well as long-lasting business partners.
There are many reasons that I like commercial real estate. I will not spoil the exciting part. You'll find your own reasons to love commercial real estate.
It is financially and personally rewarding to invest in commercial real estate. Take a look at the many motives to invest in commercial real estate. Imagine how you can reap all these amazing benefits! You can achieve it!
