Advices for Miami Commercial Real Estate Investing

With the tight Miami real estate business going on, things have been not that good. So how does one can take advantage of this kind of scenario that we are facing right now? Well surviving is the key. Like most real estate investors, you began with the “no money down” strategy on residential deals. There are several reasons why you should invest in commercial real estate but the risk level is not one of them, there is a lot of risk involved in commercial real estate investing that goes beyond the asset and how the markets are doing. The real risk in commercial real estate investing is the fact that a large commercial deal will entail a lot of money and a lot of people. Money and people can be a lethal mix in any business transaction especially large commercial transactions. So you should be clever in investing.

Before you run to the hills, understand that risk is just part of doing business and not a good reason not to invest in commercial real estate. The pros definitely out weight the cons. The bad news is there is no way to get around the risks when it comes to mixing money and people but the good news is there are actions you can take to minimize them. There are actually things to consider in investing in commercial real estate, one of them is respect. Before you do anything, you should have a healthy respect for your deal. Respect for your investment with regards to risk will drive you to take the precautions necessary to protect yourself and your investors. Actually respect pays a big part in investing especially if you are in a tight bond with your business.

As well know real estate investing can be tricky and has a lot of ways on going at it. So another advice that I can give is that you need to pay for good Advisors. Your advisors are an important part of your team. Do not be cheap and instead be smart and practical at the same time. Good advisors such as real estate attorney, asset protection attorney, CPA, mortgage broker, real estate agent/broker, insurance broker, property manager, mentor, etc. are worth their weight in gold. Be willing to pay for it. Don’t cut commissions, don’t use prepaid legal, and don’t take short cuts when it comes to your advisors. Be safe and smart when it comes to things like the legal matter. Accept the advice from your advisors you’re probably thinking the other side but many people will listen and ignore their advisor’s advice. If you are going to pay your attorney $400 an hour make sure you use the advice you are given. If you do not agree, get a second opinion but never ignore professional advice.

Another important thing to consider is partnerships I can go on and on about partnerships. I have had horrible partnerships as well as great ones. The problem is that horrible partnerships linger like garlic. Partnerships are like parenthood. It is easy to be a parent but difficult to be a good one. Time and time again, I have counseled many of my students on partnerships. The key thing I have learned is to prepare for the worst by having an operating agreement in place (done by an attorney). If things fall apart, your operating agreement will help soften the breakup. If your operating agreement is not done well, it could get ugly. Investing in Miami commercial real estate can be difficult but doable. Be sure to make some great strides on making your investment gold.

Jron Magcale
http://miamirealestateinc.org

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One Response to “Advices for Miami Commercial Real Estate Investing”

  1. gun2819 Says:

    Great article Commercial Real Estate investors but investors may want to consider another way to look for investments.

    I started using http://www.BuilderBrokerNetwork.com, it’s really inexpensive (I think it’s $59.99 a year). Basically, it networks commercial brokers, builders, and investors together. They have a Wants/Needs section that allows investors or buyes who are looking for certain types of commercial properties to post their needs then it’s broadcasted to their database.

    Hope this helps.

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