Investing in commercial real estate is much different than investing in residential properties, and it carries its own set of lessons and rules that need to be learned in order to succeed. Here are some tips which can help you to succeed in the highly competitive commercial real estate market.

There’s never a perfect time

If you wait for the perfect time to pounce on your next big deal, it might never happen. The commercial real estate market fluctuates with the same volatility as the stock market, and if you keep waiting for the ideal moment, you are more than likely to miss a number of golden opportunities through indecision. Just start out with a simple property purchase and let things unfold from there.

Go big as soon as you can

After you’ve gotten those first couple small property deals out of the way, you should plunge right into larger deals as soon as possible. Don’t be intimidated by purchasing larger properties, because these can turn out to be a lot more financially rewarding than all the smaller, less profitable properties.

Hold on to appreciating assets

If you have assets which are steadily increasing in value, don’t sell right away to make a quick profit. In most cases, the longer you hold onto appreciating assets, the better off you’ll be, since history tells us that these assets will continue to appreciate. Just to make yourself feel more confident, by all means keep track of market forecasts.

Invest by using an IRA

If you do find yourself having to make use of personal funds, using your IRA account may be one of the best ways to do that. A self-directed IRA is what you should use, because this is a special type of IRA which allows alternative investments, and of course it will allow you to invest without using your taxed income. To make sure you get this right, consult with a financial advisor before putting the plan into execution.

Commercial real estate and JNI Lending

If you need funding for your next big commercial real estate project, bring your proposal to JNI Lending, and let us work with you to find a funding solution. Contact us at your convenience to learn about how we can help you accomplish your commercial real estate objectives.