If you’re ready to make an investment and capitalize on the fast growing real estate market in Seattle, then commercial property is a great choice. Whether you chose to invest in store locations or multi-family homes, you have to decide where to place your investment, how to manage the property, and how much you can afford to spend in order to achieve a reasonable ROI. For most getting started out with real estate investment, companies specializing in commercial property management in Seattle could be the best way to go in order to maximize profit, minimize time spent with the property, and to rent more quickly. Most people start out with single family homes, but commercial real estate is a profitable venture that could yield a faster return on investment. Here are a couple of things to consider before you get started.
Set a Budget but Think Big
Chances are you might have to take out a loan, consider a partnership, or find commercial financing to purchase a smaller commercial real estate property, so why not think big. Go for the biggest thing you can afford and get money for so that you pay off your loan or investment more quickly. For example, 10 unit office building might be more affordable, but a 50 unit apartment building will pay for itself more quickly. If you plan on managing yourself instead of hiring commercial property managers, you can also consider that managing a dozen lots is about the same work as managing a hundred. Try to decide which units will pay off more quickly and go from there.
Take Your Time Making a Purchase
If you don’t want to regret making a purchase, you have to ensure you’ve made the right decision. Signing a large contract and then finding someone offering you the same deal for cheaper won’t be good for your morale or your pocket book so make sure you research all of your options before you make a decision. Consider the market value, get expert financial advice and always get a second opinion, hopefully from a professional.
Don’t Expect an Instant Profit
The larger your investment the longer it will take to make a return, so don’t expect instant profit. If you’re concerned about getting your investment back more quickly, make sure you have professionals managing your property. Knowing how to pitch the property, where to advertise it, and how to manage it effectively can increase your rental options, so don’t be afraid to ask the pros for help. In general, you might take as long as a year or more to see a good return, especially if the property needs work when you purchase it.
Consider Commercial Property Management in Seattle
Companies that specialize in commercial property management in Seattle will have a few distinct advantages when it comes to managing your property. The first is that they are professionals, it’s their job, and they know the complete ins and outs of the legal system surrounding property management. From legal paperwork to just exactly how to treat the tenants, a professional management company will have it all down so you won’t have to spend weeks studying to master the basics. Another advantage is that they know how, when, and where to advertise the property so that you fill out your units and start making money faster. While it is true that you will have to pay your management company, the cost is usually well worth the results.