Investing in commercial real estate (CRE) is a great avenue for building up your portfolio. Whether you’re just starting out or already have a few properties in the fold, these tips can help you maximize your CRE investing efforts.

Focus on Value

CRE investing is largely about finding value. That, in turn, means taking all aspects of property into account before you invest in it. Trying asking yourself questions like these:

Is this property’s cheap price a result of its needing a lot of work?
How much income will the property generate, and how much will it cost to oversee?
Is this area’s desirability rising or falling?
How expensive will the insurance required for this property be?

Thinking about those questions carefully can help prevent you from overpaying for a subpar property or purchasing real estate that you can’t financially handle long term.

Have a Maintenance Plan

As hinted in the previous tip, a huge part of CRE investing is taking care of a property once it’s in the fold. That means you should have a maintenance plan in place so that your purchases don’t decay over time. If you lack the funds to pay for solid maintenance services, perhaps now is not the time to invest.

Find a Mentor

Mentors can be a huge help when it comes to CRE investing. They can provide advice on different markets and property types, and they can tell you about their past mistakes so that you don’t repeat them. Don’t be shy about reaching out to see if someone is willing to give some tips. 

Don’t Spread Yourself Too Thin

While accumulating investments can be great, it can also lead to a case of overextension. Expanding too quickly is a surefire route to neglect and financial challenges. Make sure you have a good handle on what’s already in your portfolio before you add more.

Want to learn about ways you may be able to fund investments and business opportunities? For advice from one of our financial experts, contact Porter Capital Group today!