How To Invest In Commercial Real Estate Hacks: A Cheat Sheet for Investors

How to invest in commercial real estate

Investing in the commercial real estate sector is a way to provide more income stream to the investor, unlike residential property investment, commercial real estate goes along further, it is a business-oriented type of investment that can be done by any investor who is interested in the real estate sector. 

As an investor who is ready to venture into commercial real estate is it very important to do your homework and minding your due diligence is crucial in ensuring your success in real estate. 

If this will be your first time wanting to try commercial real estate you need to understand how commercial real estate is different, analyze comparable, and Use the right success metric.

What Is Commercial Real Estate?

Commercial real estate is a workplace for individuals or entities who are ready to do business with present properties in the commercial sector of the real estate industry.

Some of the types of commercial real estate property include apartment buildings, shopping malls, office parks, storefronts, restaurants, hospitals, hotels, and more. 

Commercial real estate is dynamic and vast, any investor must understand that the investments options within commercial real estate are broad and expensive.

Why Invest In Commercial Real Estate?

Deciding whether to invest or not in commercial real estate can only be known to the investor, nobody can force you to hold a portfolio of this investment because almost all the investment opportunities that can be found in commercial real estate are expensive.

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As an investor, if you think, you will be fine with this multi-billion dollar marketplace then you have made the right decision, it is a good place to build wealth.

How To Invest In Commercial Real Estate

If you are planning to invest in commercial real estate; here is how to start with an online real estate investing platform and here is the best site you can start with.

CrowdStreet is one of the easiest ways to start investing in commercial real estate is with CrowdStreet.

CrowdyStreet focuses on commercial real estate and since its inception in the year 2014, investors on the platform has funded nearly 500 deals

This leading online real estate investing at platform givesowssinvestorjoinnnt other investors on the platform and start enjoying commercial real estate profits.

Working with CrowdStreet requires you to be an accredited investor, which means there are some criteria, which are: 

You must have earned nothing less than $400,000 in two years and you are expected to do the same in the current year. A married couple will need to have earned more than $300,000 in a year. combined; OR Have a net worth of over $1,000,000 when excluding the value of your primary residence; OR  Hold a trust with assets over $5,000,000, OR Hold a Series 7, Series 65, or Series 82 license.

If you must invest in commercial real estate with Crowdstreet you must meet the criteria of an accredited investor, if this is achieved then you can invest in a deal on the CrowdStreet Marketplace.

A minimum of $25,000 is needed to invest in any project on the marketplace, sometimes the amount to invest in a project can be more than the initially started figure, it all depends on the project you are choosing to invest You can choose to invest in a real estate fund or an individual project.

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There is a wide range of offers and investment opportunities in the CrowdStreet marketplace and an experienced investor who is interested in commercial real estate with no money to go with the individual project can also find a way to cut of the marketplace profits.

Commercial real estate properties cost more money than residential real estate investments and the lending process can be much more complex, it is advisable to do your homework before you venture into it.

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