Rental properties are a fantastic investment opportunity, but if you’re new to the world of investing, navigating the process can be tricky. To help you avoid any potential mistakes, consider working with a commercial real estate advisor. How do you pick the best one? Here’s what you need to know to choose the right commercial property investment advisor for you.
What’s Their Experience?
When considering a commercial property investment company, you should look for one who has been in business for an extensive period. You will want to know how many years of experience and the overall track record of the agents that work for the company. How much do they know about the current economic trends and other factors that can affect the real estate market? Ask detailed questions and request proof of credentials. Ask for references and follow through with previous clients.
What Are Your Real Estate Investment Goals?
You should have an idea of what your investment goals are before seeking out commercial real estate investment companies. What are you looking to achieve? Are you working towards building residual income?
Are you looking for tax benefits? The new tax laws that went into effect this past year provide investors with a 20% income deduction received through LLCs and other pass-through entities. Knowing what your goals are ahead of time will help you to determine which investment property best meets your needs.
Is Rental Property Management Available?
As a new commercial real estate investor, having rental property management available can be beneficial while you are learning the ropes. Investigate how the company has handled property management in the past. Do they have a big enough team to handle the responsibilities of multiple commercial properties? Do they have extensive experience with the types of properties you are most interested in? The more experience they have, the more likely that you will receive the return on investment you are looking for.
How Much Does The Investment Company Cost?
Commercial real estate investment companies charge a range of fees, depending on what properties they have and the size of their real estate team. According to SmartAsset, financial advisors typically charge a flat fee in the range of $1,500 to $2,500 for a one-time, financial plan creation. If you’d like the advisor to continue managing an ongoing portfolio, they’ll likely charge one or two percent.
How will these fees affect your investment returns? Shop around various companies and compare fees. However, be careful about selecting a company simply because their fees are the lowest. Without the proper experience, you can end up paying more than you bargained for.
Choosing the best commercial property investment company is critical for your success in real estate investment. Do your homework carefully and understand all the terms and conditions before signing any contracts. Your investment is an important decision for your financial future so be sure to choose wisely!