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You’ve probably heard of people investing in real estate and flipping houses, but that part never really appealed to you. You were more interested in larger properties and all the exciting possibilities there are in that realm. But can you really earn an income off commercial properties? The answer is yes. Read on to discover how.
Commercial property includes places like office buildings, shopping malls, apartment buildings, hotels, warehouses, and industrial buildings. Earning money off of the ownership of commercial real estate takes research and patience. This is not an investment you can make with a quick turnaround.
One of the key things to keep in mind is you will need to surround yourself with some experts. There are Certified Commercial Investment Members who have taken the time to get the training they need to be able to understand the market. You should also have a commercial real estate agent who is only working with you and is not playing both sides of the transaction. Your agent should also be working with a broker who is part of the National Association of Realtors.
The CCIM will be able to get you a financial picture with what kinds of expenses you should expect as well as what kind of return on investment you might be able to realize. If he or she doesn’t provide it, you should ask for a schedule of annual expenses, including the cost of property management. Typically this amount is about 10% of rent from an apartment building and will vary for other properties.