To make your commercial real estate investment a profitable venture, you to work with an experienced team who can offer you guidance. The team at NAI FMA Realty, Lincoln, NE, share five tips for first-time investors.

5 Tips for First-Time Commercial Real Estate Investors

Know the Different Types of Commercial Real Estate

To invest in the right property, you need to know what kind of holdings are considered commercial. Any property used for business purposes, including a residential property rented out to tenants, qualifies as a commercial investment. Other familiar types of commercial real estate include retail, office, hotel, and industrial properties. 

Know the Local Real Estate Market

Research about the local real estate market where you’re planning to make your investment. As you carry out your property search, pay close attention to the inventory available, local taxes, and environmental issues. You should also learn about the availability of skilled labor in that market.

Know the Small Details

There are a few things about commercial real estate that you need to know before you embark upon your investment. For example, the income potential of commercial real estate is directly related to its usable square footage. The leases for commercial property are longer than the ones for residential. And, commercial money lenders approve loans only if the seeker already has the 30% down payment available.

Learn to Identify a Good Deal

A good investor always has an exit strategy in place. Learn to assess risks involved with a property including what types of repairs and other expenses are involved before making an investment. If it doesn’t meet your financial goals, it’s not a good deal. 

Choose the Right Builders

Work with builders who have established a solid reputation in the market. Choose a team that will be responsive to your needs and has experience working on the type of commercial real estate you have chosen.       

The experts NAI FMA Realty are ready to help you with your first commercial real estate investment. You can reach their team by calling (402) 441-5800. You can also visit their website to read more about their services.