Talk with your tax advisor before investing in commercial real estate
As regulations at the local, state, federal and international levels evolve and change, it is paramount that investors are knowledgeable about the trends, challenges and legislation affecting the commercial real estate industry. A professional tax consultant can educate you as to the tax advantages applicable to commercial real estate investing, formulate a plan to assess property value to ensure lower tax rates and provide complete and accurate reporting in accordance with property tax rules and regulations.
Establish short-term and long-term goals
An investor must understand both the immediate impact of their commercial real estate investments as well as the long-term prospects. An investor should approach real estate activities as a business in order to establish and achieve short-term and long-term goals. Creating and following a business plan allows real estate investors to visualize the big picture in order to identify objectives, determine a viable course of action to achieve their goals and subsequently maintain focus on their goals rather than on minor setbacks.
Research real estate brokers
Since commercial real estate brokers benefit by selling properties, it’s vital that you work with only those who are honest and ethical. Prior to establishing a relationship with a broker to help you invest in commercial real estate, learn how they negotiate, inquire about their background, such as the training they have completed and any certifications earned (such as the CCIM designation) and ask about their specific expertise in investing in commercial real estate. An honest broker will be willing to answer your questions with ease regarding their capabilities and how they earn their money.