Are You Looking to Invest in Commercial Real Estate?

Hard money mortgage lenders

Real estate investment continues to be a an income opportunity for many Americans. In a time of challenging economic growth and unpredictable highs and lows, many of the commercial real estate investing basics serve as a guideline for those individuals who still want to add to their portfolios.
Using secured short term loans and other types of renovation lending opportunities, commercial property investing groups continue to look for properties with the best potential. From considering the needs of the community to anticipating future use of areas of a city, commercial real estate investing basics help many individuals turn a quick profit.
As America prepares to inaugurate its first ever President without any political office background, many Americans, especially investors, find themselves struggling to predict what the future will bring. The fact is, however, this next Presidency appears to be one that will favor big business. With that in mind, commercial real estate investing basics may come in handy as the nation waits to see what the next four years will bring. Like it or not, we are entering a new era in America and those who make money on commercial real estate investments will likely be those who commit to the change and watch for their opportunities:

  • Commerical real estate investment financing takes into account the current value of a piece of property. Using this value, many loans can be achieved without additional collateral as the property itself serves as the down payment.
  • Only the non hesitant are able to capitalize on the very best commercial real estate opportunities. Using commercial real estate investing basics, successful investors can look at a property and determine if its current value is worth the money and time that it will take to revamp it into a profitable property.
  • Most hard money loans use the property itself as collateral. This process of secured property with equity that ranges between 30% and 50% serves to keep the investor well protected.
  • Many people looking to buy homes are first time home buyers. And while 32% of these first time home buyers are looking for property, commercial investments tend to be dominated by buyers with a history of many other purchases.
  • Interest rates are higher and loan to value ratios are lower on most hard money loans. In fact, hard money interest rates can start at 15%, 18% or even higher.
  • Talking to other commercial investment professionals can help you understand the many steps that are involved in entering this market.

  • Typical bank loan borrowers looking to take out a business loan have had to be in business for two years, have at least $250,000 of annual revenue, have good personal and business credit, and have to be cash flow positive. Hard money investment loans provide opportunities to lenders without this kind of financial background.
  • Ooupaced. In the year 2011, population growth in urban areas finally began to outpace the suburbs in the U.S. for the first time in more than 100 years. This trend may serve as a commercial investment opportunity.

  • Typical bank loan borrowers looking to take out a business loan have to have been in business for two years, have at least $250,000 of annual revenue, have good business and personal credit, and have a positive cash flow.
  • How far are you from reaching your investment goals? Are you ready to make the jump into commercial real estate?
  • Each new Presidential election can present new investment and business opportunities.

  • Can you think of an area of commercial real estate property in your community that is underinvested?
  • Hard money loans offer quick money at higher interest rates.
  • Always look at the current use of a property and imagine how else it could be used.
  • Never underestimate the power of location.
  • Getting into the commercial investment field requires both capital and courage. Some investments do not pay off as well as others, but it is important to make sure that you have several opportunities that you are looking at.
  • Every commercial real estate investor tells a different story. It can be beneficial to talk to others who have had both success and failure in your city. This advice can help you make more informed decisions. Real estate investment firms can also be very helpful resources.

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