Commercial Real Estate Investing

The book I read to research this post was Commercial Real Estate Investing for Dummies by Peter Conti et al which is an excellent book which I bought from Kindle. One of the tricks of this type of investing is to get the land use type of the land changed. If you buy land that is agricultural you can get it cheap and then if you can change it to residential you stand to get a big profit. Often when you buy land they will give you time to consult any officials and also you need to do research which can be done at your local library to determine the probability of changing its land use type. Some people option a property which means you can buy that property at a set price within a set period of time although you will usually have to pay for this. Some investors use a blanket mortgage which means that the mortgage is secured on several additional properties in addition to the property you have borrowed for. This is particularly useful if you need a 100% mortgage but bear in mind you could lose all the properties. When you buy a property you should determine what the going rate for that type of property in that area, you should also know what rent you are going to charge or if you are selling or leasing lots how that compares to the local competition. You can tell if you negotiated a good deal because it should be easy to get customers and do you really want to have a hard time getting customers. Sometimes a seller will want more than a property is worth and one way around is to agree that he will get paid in a certain time period ie 2 years at a certain percentage rate which should be low. Another point is don't take the business books for a property or business at face value, get an accountant to check and he should check things like bills and receipts in addition to checking the account books.