When speaking with a group of real estate investors recently in Philadelphia, the question arose as to how many of them have completed a commercial real estate deal in the last year, and surprisingly, the answer was none. It seems that many of them were either happy with the currently market conditions or they didnt really have the aptitude to go about buying a commercial property.
Market specialization? No. It seems that the majority of real estate transactions go something like this:
1. Residential real estate is the sweet spot of the small real estate investor.
2. Commercial real estate is typically left for the small business owner, who has decided to stop renting.
3. Both of these sectors of the real estate industry do have some crossover, but the previous two statements are typically the norm.
So how exactly are commercial properties being bought, sold, being rented? Whats the best way to acquire commercial real estate, and who you need to help you in doing an acquisition?
Here are five key points to consider:
1. By far the most popular business entity for owning commercial real estate is now the limited liability...