“It’s a great time to buy.”
How many times have you heard this statement? Probably more times than you could even count. But the weird thing is, most of these advertisements focus on items like cars and HVAC systems — you’d think that the best time to buy those products is when you need them, rather than buying them just because the economy has decided to stabilize (finally).
The unfortunate effect of hearing this phrase thrown around so often is that you’re desensitized to it when it actually matters. And when it comes to commercial real estate investing, it matters.
Deciding to invest in commercial real estate is a big decision, and it’s something that really does depend on how well the rest of the economy is doing. But it depends on a lot more than just environmental circumstances, and not everyone can succeed in commercial real estate investments.
So how do you know if you have what it takes? Here are a few traits of great commercial real estate investors that help them reach success:
- Organization. There’s a lot of paperwork involved, and a lot of management and partnership skills required. Most investors have a strong background in finances and law, because these tend to be the most confusing parts of managing a piece of property.
- Risk-taking. Some of the most successful commercial real estate developers and investment firms are the ones that don’t look at what’s trending now — they pay attention to places that have potential for the future.
- Perseverance. Many investors choose commercial, rather than residential, real estate because there are fewer small tasks to manage. However, it’s important to realize that jumping into the industry takes some courage; investing in these properties can be pretty expensive at first, before they start paying off.