Whether you’re new to buying, selling, or leasing commercial real estate, the amount of information available to you can be overwhelming. It’s true that this area of real estate can be exciting and even incredibly profitable. But it would be a shame if you avoided it or jumped at the wrong deal due to misinformation.
To be sure, commercial real estate can be a fantastic strategy to build wealth and opportunities for your business. But there are no guarantees when it comes to this form of investing. If you want to separate fact from fiction, here are several common commercial real estate myths that have been debunked repeatedly.
1. It Requires Too Much Money
One of the biggest myths surrounding commercial real estate is that investing in it requires deep pockets. While it’s true that commercial property can be costly and require a significant capital investment, many banks and other lenders are willing to partner with investors on the right deal.
Whether you approach a traditional or private money lender for backing, it’s vital that you present the project professionally. If you can show that you have the experience and skills to turn a profit, you are likely to be successful.
2. It’s Too Time-Consuming
Another misconception is that commercial property is too complex and time-consuming. As an investor, your primary objective should be to locate and close deals. Beyond that, you can hire people with the expertise to keep your properties running smoothly while you work on the next deal in your portfolio.
3. It’s Way Too Risky
There is risk in any type of investment. Commercial real estate is no different. There are plenty of commercial property deals that are low risk and a good deal that would fall in the high-risk category. You will need to gauge what level of risk you are willing to assume and, like any other investment, tailor your search to meet those criteria.
4. There Are No More Good Deals
What is considered a “good” deal is highly subjective. But the truth is that there are still plenty of fantastic commercial real estate investment opportunities available. Some people prefer to purchase and hold property long-term and others look for short-term opportunities in emerging markets. The key is to decide what type of investor you are and then be ready to purchase as soon as the right deals come along.
5. Only Bad Properties Are For Sale
This goes back to the notion that there are no longer any more good deals. In fact, people sell commercial properties every day for a variety of reasons. Business owners decide to retire and sell a property as part of their exit strategy. Some run into financial difficulties and have to sell at or below market value. To separate the good deals from the bad properties, just make sure you do your due diligence and get a title search and thorough inspection as part of the deal.
Get the Commercial Real Estate Help You Need in Charleston, SC
Now that you know some of the most common commercial real estate myths, you may be ready to get the help you need. If you do business in the Charleston, SC area, Caldwell Commercial Real Estate Services can help you lease, purchase, sell, or manage a commercial property anywhere in the area. Our professionals have over 80 years of combined experience in the industry and are ready to be your trusted partner. Contact us today to get started.