You don’t have to be an economic genius to get started in commercial real estate, and you also don’t need to have a massive amount of money for your first real estate investment. Here are some things to keep in mind when looking to become involved in commercial real estate, and you don’t have a lot of experience under your belt to start with.
Even if you don’t have money to make your first commercial real estate investment, you can achieve a level of success just by keeping your eye peeled for the right kind of investment. For instance, if you were to purchase a two-family property or a three family property, you could live in one at no expense to yourself, while renting the other two out. This would pay for the mortgage, or for any loan that you had to take out to acquire the property, and you would still be making a profit.
Reinvest as Quickly as Possible
As soon as you have rent money coming in, it’s a good idea to reinvest in a second property, rather than frittering that money away. If you follow this same approach for several years, it may provide you with the opportunity to accumulate a modest degree of wealth which can set you up nicely for the future.
Be Frugal in How You Live
Living extravagantly will burn through the profits you’ve made on your commercial real estate investment very quickly, and it could lead to eventual failure in commercial real estate. By maintaining a frugal lifestyle and watching all expenses closely, your savings will begin to pile up, and you’ll have opportunities for even greater investments in the future. Eventually, you may just find yourself to be a legitimate commercial real estate entrepreneur.
Thinking of making a real estate investment?
At OneClick Commercial Funding, we are always interested in helping entrepreneurs achieve their goals in real estate. Contact us today if you need funding to pull off your next real estate project, and let our finance specialists work with you to develop a workable plan.