Commercial real estate investing can be a lucrative field – but if you’ve primarily dealt with residential investment properties, you might be a bit nervous about jumping in with both feet.
Commercial Real Estate Investing 101: What Makes a Good Investment Property?
If you’re a commercial real estate investor, the same principles that apply to residential investors will apply to you:
- Appreciation. Property values that go up result in a profit for you.
- Cash flow. If you rent a property to make a profit, and you have more income coming in than expenses going out, you’ll have a positive cash flow.
- Principal reduction. Each month, you’ll pay down on your property. The amount you owe decreases. Naturally, with a short-term hard money loan, this won’t have as much of an impact as it would if you had a conventional loan – but many people start with a hard money loan and transition into conventional financing over time.
Where to Find Commercial Real Estate Opportunities
If you know a commercial broker, you’re already well on your way to finding great investment opportunities. It’s always a good idea to cultivate professional relationships with industry professionals.
However, if you don’t already know a broker, there are still plenty of ways to find amazing deals on commercial properties. You can:
- Use websites such as Loopnet.com, which is a large site for commercial properties. You can find apartment buildings, office buildings and restaurants (and several other types of commercial properties, as well) on Loopnet.
- Talk to local Realtors®. In many cases, even if the real estate agent you talk to doesn’t have commercial listings of his or her own, they’ll be able to help you find several in your area.
Do You Need a Hard Money Loan for a Commercial Investment Property?
If you need a hard money loan for a commercial investment property in or around Atlanta, we may be able to help you.