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Things to Bear in Mind Before Venturing into Commercial Property Investment.

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Presentation on theme: "Things to Bear in Mind Before Venturing into Commercial Property Investment."— Presentation transcript:

1 Things to Bear in Mind Before Venturing into Commercial Property Investment

2 The commercial aspect of real estate can be an appealing proposition for any investor as it offers the ability to create new clients and grow your business interests.

3 However, the commercial side of the real estate is also different from the residential side, which demands careful consideration of certain factors before investing in them.

4 Here are the things you need to bear in mind before venturing into commercial property investment. 1.Things will take longer 2.Understand the market 3.Area demographics & trends 4.Study the risk 5.Avoid failing business or business models 6.Play an active role

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6 In comparison to residential properties things like finding new tenants take longer time in commercial properties.

7 Moreover, the renovation of the commercial property also takes time. But, the lease period is longer and you need to have patience while dealing with commercial properties.

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9 As an investor, you need to understand the market where you are investing. Having a good knowledge will allow you to make lucrative investments, which will yield high returns.

10 Furthermore, understanding the market will enable the investors to fine tune their commercial real estate investments and diversify their portfolio.

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12 When you are investing in a commercial real estate, you need to consider demographics and trends in the area.

13 The area must be having a favorable demography for investing. Moreover, the future development prospect of the area must be excellent.

14 You must also get yourself acquainted with all the laws governing the commercial property including the environmental laws.

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16 The risk assessment is completely different in the case of commercial properties in comparison to the residential real estate and varies according to the property type.

17 The success of two residential properties, which are next to each other is similar, while commercial properties in a similar position could fluctuate independently.

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19 If your tenants are grocery stores, restaurants, bars or some business & business models, who are moving to the online platform, then you can assume they will default on their payments anytime.

20 You need to search for failing business and shouldn't deal with them. However, if your tenants fail in their payments, prepare your insurance properly to ensure you are covered when this happens.

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22 Commercial property investment is not a passive investment and most of the successful investors take a very active role in the functioning of their business.

23 You must have systems and process in place to make sure that the property is achieving its maximum operating potential.

24 You must constantly keep an eye on development and economic trends in the local market, as well as bigger economic trends.

25 https://www.landwin.com/ https://www.facebook.com/LandwinInvestments/ Thank You!


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