Commercial real estate investment requires dedication, commitment, hard work and an understanding of considerations specific to this sector of real estate. For example, in most cases, commercial real estate in the Atlanta area will be valued based upon cash flow as compared to the sale of similar properties as is the case with residential real estate.
Working Knowledge of the Market
Equally important in becoming a successful commercial real estate investor is to develop a working knowledge of the market. Those with a specific knowledge in a particular area of commercial real estate should consider investing in that sector as compared to other sectors. Whether it is investing in a hotel, an industrial property or manufacturing property, investors should stay with what they know best. For example, an investor with years of experience in the hospitality industry would be better served by investing in a hotel as opposed to an industrial property. Knowing the best use for a particular property can help to maximize long-term investment successes.
Investing in Atlanta Commercial Real Estate
Also remember that there are different types of formulas used in commercial property investing as opposed to residential property investing. Profit and loss formulas for commercial property will be different and must be considered. One example of this is cap rates. Those investing in commercial real estate should take the time to investigate and thoroughly understand all aspects of cap rates as well as loan-to-value ratios and net operating income. While these concepts are not particularly difficult to understand, they should be thoroughly explored because they can have a direct and lasting impact on long-term profitability. Investors new to commercial property investing should also understand that patience is important.
Trusted and Reliable Team of Professionals
Take the time to make the right investment decisions rather than rushing in and purchasing the first property viewed. As an added note, building a trusted and reliable team of professionals is perhaps one of the best ways to guarantee long-term success when investing in Atlanta commercial property. Acquiring the right property at the best price with the right team of professionals on board can virtually guarantee successful investing going forward. Finally, those investing in commercial real estate should avoid putting all eggs in one basket and also consider the benefits of residential real estate investing. Both types of investments can be done simultaneously as a way to increase profitability. Contact Wiedmayer & Co. today to learn more about commercial real estate investments in Atlanta.