Hello Friends, in a world where things move so fast, it’s not uncommon that we sometimes make quick and wrong decisions. The best way to avoid these mistakes is to be knowledgeable and have a keen understanding of your Investment. So let’s begin with the top 4 mistakes people usually make while investing in commercial real estate.
1) Not being Over Leveraged: Borrowing funds in Real Estate is common, but borrowing too much money can be disastrous, especially when you do not have the solid plan to back it up. It’s also important to have additional cash reserved for things unplanned, such as a tenant moving out. Having sufficient reserve funds helps to be better prepared as an investor from unexpected expenses.
2) Not doing proper Due Diligence: Whether the due diligence is on the property itself or understanding the local market, potential investors must do their research properly. For property Due Diligence, you should examine the following:
- Property Conditions and system
- Environmental Methods
- Structural Building components
- Local Demographics
- Population Growth
3) No exit Strategy: Having a strong plan, including ways to exit in an investment deal is a sign of a Seasoned investor. The exit strategy should include things like:
How long would it take?
How much money would be made?
How to Access the profits?
4) Failing to hire the Right Professional: Hiring a Team of Local Experts like Realtors, Lenders, Accountants, and Attorneys go a long way to ensure a safer and Rewarding Investment
If you have any questions regarding Real Estate, I am just a call away.
You can reach me at 778-994-7450 or can follow me on Instagram – jasoberoi_realestate