How To Choose The Most Profitable Commercial Real Estate Investments

In today's troubled economic times, it's more important than ever before to have a wide and varied investment portfolio. For that reason, many people are looking outside of the standard investments of stocks and bonds and turning to commercial real estate. Commercial real estate, if you have the money for the initial investment and the time to manage your investment, can be worthwhile. However, there are definitely some tips to keep in mind for ensuring that your investment is as profitable as it possibly can be.

Go for Proven "High Yield" Investments

Some real estate investments have a higher chance than others just because they are considered "high yield" investments. Right now, the highest yielding types of commercial real estate include:

  • Mobile Home Communities
  • RV Parks
  • Self-Storage Properties

Thus, if you go for these types of investments, you can practically guarantee good returns. When you're just starting out, it's definitely best to play it safe, so there's certainly nothing wrong with exclusively going after proven "high yielders."

Seek Out the Best Deals

As mentioned, you're going to have to have some money available in order to invest in commercial real estate. If it didn't cost you money upfront, then it wouldn't be a true investment.

However, the less money you put in upfront, the less time it will take you to recoup your investment and start profiting. That's why it's important to diligently seek out the best deals in your area. Scour online advertisements and print classified ads to find good deals.

In addition, consider hiring "real estate bird dogs"-- trained professionals who charge a small fee to use their inside knowledge to find the very best buying options available. Their prices will be well worth the deals they can find you, and with their expert input, combined with your own research and hard work, you can't possibly go wrong.

Know the Neighborhood

Finally, before you buy any piece of commercial real estate, do your research on the neighborhood in which its located. Obviously, you don't want to invest in a property in a downtrodden neighborhood or one that doesn't have much of a future ahead of it.

Explore the neighborhood yourself, talk to the locals, and research the area online. If you can get in on an up and coming neighborhood, that's great, but at the very least, you can avoid "investing" in a neighborhood that's going nowhere.

The bottom line is that commercial real estate investing is a smart and worthwhile thing to do...providing you're careful about the process from start to finish. Click here to learn more about where to buy commercial real estate.