Commercial Real Estate Misconceptions: You Mean Location, Location, Location Was a Lie?

Commercial real estate is an amazing lucrative business that could offer a wealth of opportunity to those who are looking for it! Many are afraid to enter such a market as commercial real property for many different reasons. Actually, there are several major misconceptions about commercial real estate that I'm going to discuss here.

People who hear about commercial real estate, even though they not necessarily in business, often use the expression Location, location and location! A lot of people think of this expression as a fact, and the three most significant attributes regarding a house are locations, location, and location!

I am here to tell you- this is absolutely not the case! While I'm not going to tell you that place isn't crucial but what happens if you are in a gorgeous location for an outdoor resort with snowy hills as well as a wonderful location for lodges, and gorgeous mountain views? What you'd like to do on the property is enhance it to become a weekend getaway with romantic couples. This could be stunning lodges, resorts as well as luxury type homes, and possibly a few private cottages overlooking the green forest. Sounds fantastic, doesn't you think?

A great location- you can't beat it! But, you learn that the zoning for this property is residential, R1, in fact. The use is only one single family residence https://www.homelight.com/agents/joe-suryan-ca-01098757-2545 per acre. No commercial properties are allowed. Did you do with your Location and location? It flew through the air!

The most significant aspect of an asset is its use. What will it be used for in the name of the city or county? It does not matter what the location of the property is should you not be able to get the permissions that are within the area of your desired use.

You can get properties rezoned, particularly as cities change and grow. Make sure you consult the county or the city to determine if these changes are actually possible, because you don't desire to purchase a property that you can't rezone and then be left with an unprofitable property on your hands.

Most people believe that commercial real estate can be complicated and you need a special training or knowledge to be successful in the industry. A lot of people think that commercial real estate is stuffed with international finance, complicated and heavy math, complicated tax rules, and forms and applications that are just too complicated to understand correctly.

I am happy to tell you that this belief is the one that is the most detrimental, as it puts the roadblock in front of many aspirations to become an expert in commercial real property. So let me set the myth to rest. There are maths involved, but most of it is not difficult: just simple ratios of adding, subtracting or multiplying. Even better, there is no need to perform the math yourself. There are others who can assist you in this regard. This is also true for inspections of the property, and filing the year-end tax report. In actuality, commercial real estate is simpler than residential real estate since you are able to focus on a single purchase that will yield perhaps 10, 20, maybe even 50 residential offers and many more!

Let me try to put it in perspective for you. If you owned a business (many of you may) Do you design strategies, maintain the books, manage the many sites, and sell your products on the first floor, and empty the trash when the day was done? I think not! It is made up of many individuals who are available to assist clients with any issues you may have. It is important to position yourself as a real estate insider, which is a leader in the industry.

Another misconception is that commercial real estate is management intensive in that you manage every property you own. I'll tell you that if you own 10 or more properties, this is difficult to manage! You don't need to actually manage your properties on your own, so you can focus on making more deals. Hire a company or set up a team of employees to take care of the day-to day business.

As you are able to see, what's circulated in conversations concerning commercial real estate is not always accurate. Before you take the information at for granted, confirm your facts. In fact, many people in this profession speak about commercial real estate as a profession in which only the experienced and intelligent can thrive. It is usually because they wish to keep others out of the market by distinguishing their own business. If you were in this position, you would too!