Commercial investment property investors look for successful investment opportunities to build wealth. Commercial real estate investors do not differ from other types of investors. Finding the potential for successful acquisitions keeps an investor searching for additional ways to create passive income. The keys to becoming a successful investor in a commercial investment property are FOCUS (education) .. . and finding a property in the right market phase of opportunity.
Where does an investor begin a professional education in a commercial investment property? Make your decision to begin where you are right now. FOCUS on the type of investor role fits your goals, . . active, passive or a combination of the two. . . then FOCUS on an investment time frame that meets your goals: long term, short term or a combination.
What are the three types of Commercial Property Investors: find properties, secure the right to the purchase and sale agreement and can syndicate the deal by bringing in partners for equity capital when using OPM (other people’s money) or do the deal on their own to complete the acquisition.
Active investors: provide equity capital to active investors, an Investment Company, or Institutional Fund once an accurate Pro Forma is provided that satisfies the passive investor about the properties potential for return on investment (The Pro Forma will match the investment criteria the passive investor has decided is their investment strategy.)
Passive investors: provide equity capital to active investors, an Investment Company, or Institutional Fund once a current Pro Forma is provided that satisfies the passive investor about the properties potential for return on investment (The Pro Forma will match the investment criteria the passive investor has decided is their investment strategy.)
The combination of both passive and active roles . . . is the third way to invest in commercial investment property and can take the legal form of a Joint Venture Partnership (JVP). This entity may provide deal analysis, contracting, acquisition, asset, and physical property management, and funding for the commercial property by an active investor, or entity with a single passive investor or group of investors.
We often hear in the news about large commercial investment acquisitions by investor celebrities. Active investors like Donald Trump, invest in deals that can require billions of dollars. “The Donald” began at some point to FOCUS on an investment strategy he believed in, the point is . . . he began with FOCUS. You can acquire commercial investment property just like Donald Trump but to do that successfully, you need specific knowledge and techniques used by investment professionals to help you negotiate, secure, acquire, manage, and eventually sell the property according to your particular investment strategy. Specialized knowledge can reduce your risk of making very expensive mistakes investing in commercial real estate for the first time, whether you are passive, active, or a combination of the two.
Learning from professional investors that successfully invest daily shortens your learning curve while increasing your return on investment dramatically. Gaining professional investment knowledge can mean the difference between making and losing money. Commercial investment property education is not rocket science. In fact, it focused on the difference between you and a successful commercial real estate investor on time, education, and the right market opportunity. Anyone can learn to invest in commercial investment property successfully with the right mentoring provided by a proven investment education resource.
Are you considering buying commercial property as an investment?. . Consider this: different Asset Types, business plans, neighborhoods, and market cycles are just some influences you will face when you make your investment decisions. You will literally waste thousands of hours of your time and never achieve success, never build that profitable portfolio unless you get the right education to help you FOCUS. It is never too early to start your education process and minimize the risks that come with investing on your own.