Commercial Real Estate Misconceptions You Mean Location Location
Location Was A Lie

Commercial Real Estate Misconceptions You Mean Location Location Location Was A Lie



Commercial Real Estate Misconceptions: You Mean Location, Location, Location Was a​ Lie?
Commercial real estate is​ a​ wonderful, exciting business that can offer a​ wealth of​ opportunity for​ those who look for​ it! Many people are often hesitant to​ enter such a​ market as​ commercial real estate for​ many different reasons .​
In fact, there are some major misconceptions about commercial real estate which I​ am going to​ address here .​
Many people who hear about commercial real estate, but aren't necessarily in​ the​ business, often use the​ expression Location, location, location! Many people associate this expression as​ the​ truth, that the​ three most important attributes about a​ property are Location, location, location!
I am here to​ tell you- this is​ absolutely not the​ case! Now, I​ am not going to​ say location is​ not important, but what if​ you have a​ beautiful location for​ a​ mountain resort, complete with snowy hills, a​ perfect location for​ a​ lodge, and​ beautiful mountain views? What you want to​ do to​ the​ property is​ improve it​ for​ a​ weekend getaway for​ romantic couples with a​ beautiful lodge, resort, luxury type housing, and​ perhaps some individual cottages overlooking the​ green forest .​
Sounds great, right?
The perfect location- you can't beat it! But, you learn that the​ zoning for​ this property is​ residential, R1, to​ be exact .​
The use is​ only one single family residence per acre, and​ no commercial property allowed .​
What happened to​ your Location, location, location? It flew out the​ window!
The most important aspect of​ a​ property is​ the​ use .​
What is​ it​ intended for​ by designation of​ the​ city or​ county? It does not matter where the​ property is, if​ you cannot get the​ zoning that is​ in​ the​ realm of​ your intended use.
It is​ possible to​ get properties rezoned, especially as​ cities change and​ grow .​
Be sure to​ consult with the​ city or​ county to​ determine if​ these changes are even possible, because you do not want to​ buy a​ property that you cannot rezone, and​ be left with an​ unprofitable property on your hands.
Most people believe that commercial real estate is​ complicated and​ you need a​ special education or​ know how to​ succeed in​ the​ business .​
Many think that commercial real estate is​ filled with international finance, heavy and​ complicated math, complicated tax rules, and​ forms and​ applications that are just too complicated to​ understand correctly.
I am happy to​ tell you this misconception is​ the​ worst, because it​ puts a​ road block in​ front of​ many people's aspirations to​ become a​ commercial real estate insider .​
Let me put this misconception to​ rest .​
There is​ math involved, and​ most of​ it​ is​ not at​ all complicated: simple ratios, adding, subtracting and​ multiplying .​
What is​ even better is​ you don't have to​ do the​ math .​
There are others who can do that for​ you .​
The same is​ true with property management, inspecting the​ property, and​ doing the​ year-end tax report .​
In fact, commercial real estate is​ less complicated than residential real estate because you can focus your energies on a​ single deal that will be worth perhaps 10, 20, even 50 residential deals and​ more!
Let me put it​ into perspective for​ you .​
If you owned a​ business (many of​ you may), would you create strategies, keep the​ books, manage the​ many locations, sell on the​ front floor, and​ take out the​ trash after the​ day was over? I​ think not! Commercial real estate is​ made up of​ many people whom are there to​ help you with whatever you need .​
You must position yourself as​ a​ real estate insider, which is​ a​ leader in​ the​ business .​
Another misconception is​ commercial real estate is​ management intensive, that you must manage every property you own .​
Let me tell you when you end up owning 10 or​ more properties, this is​ almost impossible to​ do! You do not have to​ actually manage your properties yourself, so you can concentrate on creating more deals .​
Hire a​ company or​ set a​ team in​ place to​ take care of​ this day-to-day business.
As you can see, what is​ passed around in​ dialogue about commercial real estate is​ not always true .​
Before you take everything to​ heart, be sure to​ get your facts straight .​
In fact, many people in​ this profession speak about commercial real estate as​ a​ business in​ which only the​ savvy and​ sophisticated can succeed .​
They often act this way because they want to​ keep people out of​ the​ market by differentiating themselves .​
If you were in​ this position, you would too!




Related Articles:




Powered by Blogger.