New to Commercial Real Estate Investing? Some common mistakes to avoid...

New to Commercial Real Estate Investing? Some common mistakes to avoid...

It's been said that the best time to invest in real estate is in a down market. Well, what are you waiting for? Commercial real estate prices are at all time lows and interest rates are still very attractive. Admittedly banks are very hesitant to make loans, especially on investment property. Investors in a strong financial position that have a good relationship with their bank are having success. If you are new to real estate investing you need to be somewhat cautious in choosing the right property.

I came across a Blog recently that addressed this very issue. It's title is 6 Beginner Mistakes with Real Estate Investing by Ryan Moeller. Ryan's advice, although taken from a Residential Realtor's point of view, has merit for the newer Commercial Investor as well. It can be found by following this link:

http://www.realreturnrealestate.com/index.php?option=com_wordpress&p=31&Itemid=110

Some of the more common investing mistakes he mentions include "falling in love" or getting emotionally attached to a deal. This is easy to do especially on your first few deals. Make sure that it is a good business decision and be prepared to walk away from a deal at any point if the numbers do not work. He also mentions "Buying in War-zones" as a common mistake. Too often properties seem priced too good to be true possibly because they are in a depressed area surrounded by vacant buildings and foreclosures. You have to remember the "Three L's" of real estate: Location, Location, Location! Another thing mentioned in the Blog is the mistake of having only one exit strategy. Try not to pin your hopes of success with a property on only one course of action. Problems can often arise that can lead to financial disaster if you are not prepared for them. Ryan says it best; "..buy below market properties that cash flow. That way you can sell retail, wholesale, lease option, seller finance, refinance, even rent and hold."

Thank you for posting the good tips Ryan! Hope everyone finds it useful as well. I welcome your comments, let me know what you think. Good luck and may all of your investments be profitable ones!

For any of your Commercial Real Estate needs in the Greater Akron, Ohio area including the Ohio counties of Summit, Stark, Portage, Medina, and Wayne, please get in touch with me.

NAI Cummins Real Estate (330) 535-2661 x 142 or by email MarkStacy@NAICummins.com

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