My Favorite Way to Purchase a Commercial Investment Property

"Happy are those who dream dreams and are willing to pay the price to make them come true." -- Anonymous

As I was on my way to my son's Flag Football practice today I drove by a property that I own. It is a nice apartment property; good location, tenants are nice and responsible, and the property cash flows very well.

As I was looking at the building I got to thinking about the fun I had when I purchased it. I actually ended up buying this property about 13 years ago with a Mentor of mine. This guy is now 82 years old and still spends some time around the property - giving him something to work on during his retirement...

That got me thinking..

What is the best way, or rather, my favorite way of purchasing commercial investment real estate property?

Well, first most people get the picture in their head of people on two sides of the table. They think of Donald Trump's Board Room with people arguing and negotiating on the property, beating each other up until one person says "uncle," and you can have it at your price.

The real world is much different. For the most part negotiating is fun, not really controversial, and you have like-minded people wanting to get an investment property transaction done.

Then it hit me. Some of my best deals have been fun to purchase, little in the way of problems, and pretty easy without the dog eat dog mentality. Some of my worst properties I have had over the years did have a lot of stress, arguing, one-upsmanship, etc.

My recommendation when purchasing a property is to truly seek a win-win scenario for both parties. Look for properties that make sense in the first place, and do not try to make the numbers make sense at the negotiation table. What I have found is that when one party pushes the other "over the edge" so to speak, they will need something from the other party sooner or later. It may be during the closing process, or it may even be a question they need answered after closing. How do you think the person who left the negotiation table feeling like they were run-over will react? Of course, the answer is that they will not be very accomodating when that time comes.

So be sure when you are at the negotiation table you follow these steps:
1. Work on properties that make sense in the first place.
2. Focus on a win-win deal.
3. Be professional.

As I reflect on this, those people that I have found to be the most successful definitely operate on the side of fun, as do I. Try to make it easy to do business with you, and take a laid-back approach. This is not to say I let the other side have everything they want and bend over backwards every time they want something. Remain tough, yet relaxed, and make it easy to do business with you. This is the best way for the long-run, and I have found the most successful too.

The bottom line is that if you are in deal with a lot of stress, problems, arguing, etc. it may not be a deal you want to be in. If there is a lot of controversy, you may want to at least think about why you have it, and act accordingly...

Do you want to learn more about investing in commercial properties? Click the link below for my FREE 7-Part Investment e-Course. I'll also send you my FREE special report and teleseminar access "How to Buy Apartments and Commercial Real Estate With No Or Low Money Down."

Download it free here: Commercial Real Estate.

Commercial Real Estate - A Financially Rewarding Investment

Getting started in commercial real estate can be a daunting task. You will have to deal with tenants, business regulations, and a sometimes unpredictable market. However, commercial real estate can also be one of the most financially rewarding investments you can make.

A wise purchase can create a valuable safety financial safety net. But before you snap up an apartment building, follow these tips to help you choose the best possible property.

1. Location

Location is one of the most important aspects of commercial real estate. Just as with residential, a good location can make up for many other property inadequacies. Some properties have more potential and can be marketed as a variety of business opportunities, lessening the need for a great locale.

However, apartment buildings, condos, parking lots, or any property that has a revolving door of tenants will benefit greatly from a prime location. You want to ensure that your property is steadily occupied in order to maximize profits.

2. Know your limits

Just because you are able to purchase a property, does not mean that you have the ability to manage it as well. Managing commercial real estate is a time consuming affair and a career in itself.

Unless you're prepared to make this property your sole source of livelihood, it's best to outsource management to a trusted professional. That way you can concern yourself with more important matters than tenant complaints and trying to phone the cable company because apartment B's TV is on the fritz again.

3. Know what clients you want

Which kind of client you're interested in working with will determine what commercial real estate to invest in. Larger businesses that rent or lease your property have greater negotiation skills and higher expectations and demands than small or family-run shops.

Smaller businesses, however, can hit financial hardship which could negatively affect your own finances. Residential property can reap great rewards, but again there will be management issues. Each kind of client will provide a unique set of challenges as well as benefits.

4. Buy new or used?

If you're buying a pre-existing piece of commercial real estate, you'll have to consider if you plan on budgeting renovations or remodels. Remodels can be a drain on finances as well as time, but you can potentially save money if you make wise choices.

Not making necessary repairs, however, can put you at a great disadvantage. Sometimes buying newer property is the simplest solution, especially if you have little experience.

5. Realtors and marketing

So you've bought some commercial real estate. Now what? If you choose an empty property or have built a new one, you'll need to attract clients. Commercial realtors can help you list and advertise your property, helping you spread the word.

Commercial real estate is a great strategy to help spread and balance your investment portfolio or can just be a great way to earn some extra income. Investing in commercial real estate is a dynamic investment that will continue to grow over time, providing peace of mind that you are generating a healthy profit with minimal continuous effort.

Whether you're buying residential or commercial property in Western North Carolina, Hendersonville real estate firm can help you get the best returns on your investment. To locate a professional realtor, visit http://www.preferredrealestatecenter.com.