REAL ESTATE INVESTMENT
As with other forms of investment it is always important to carefully do your research on commercial real estate investment before you start. Having a good real estate investment plan can help you make sure the property you invest in has a good residual income for you. If your real estate investment is going to include commercial real estate then you are going to be looking into hotels, malls, retail stores, business complexes, medical buildings and other industrial properties. Also any building that you use to make a profit and income is considered a commercial property.
Homeowners typically buy their real estate retail, which means they'll pay more; it also means they'll need traditional financing, want a home inspection performed, need bank appraisals, and want everything to be perfect in every way. First, you'll need a licensed contractor (in the next chapter we'll talk about contractors, how to find them, what to look for in them, etc), who can oversee the renovation process from start to finish. For retail properties in particular, you should be careful to pull the necessary permits and avoid shortcuts of any kind, as a paper trail may be necessary to show appraisers, buyers, realtors, etc.
Who is your target demographic? What do they like in their homes? If you don't know, look at other homes in the same immediate area that have sold to 27-34 year old white couples with young children, or 50-59 year old Asian couples with no live-in children, etc, and take a look at what features have been included in the houses that have sold the fastest and for the highest closing price. Single professionals between 24-32 in the Canton neighborhood in Baltimore, for example, pay a premium for rooftop decks, stainless steel appliances, hardwood flooring on the first floor, ceramic bathroom flooring, and rear car ports. Hardwood flooring on the second floor, and expensive fade lighting, however pleasant, probably won't command enough of a boost in sales price to justify their expense. Rear yards are not a priority for young, single professionals; guaranteed parking, however, is a priority, so paving a car port in the rear yard makes for an excellent selling point.
If you still aren't sure about real estate investment then consider the following tips to help you get the most success out of your investments. First you may want to consider real estate properties in other countries. While some markets are slowing down in the United States and Europe there are other markets globally that are still going strong.
Second you want to makes sure that your real estate investment plans are going to be profitable. While this may seem simple and straight forward there is a surprising number of people who aren't making as good of a profit as they had hoped because they didn't plan carefully. Examine the real estate market carefully before making a purchase. Compare all the property values in the city, state or region and make sure you know what you will be buying. Make sure the rental price is going to be realistic after you purchase the real estate investment property.
If you are in doubt at any time about your decision then you should ask for a second opinion from a professional with knowledge in the area of real estate development. Make sure you hire independent professionals for things you can do yourself such as checking out the structural soundness of a property. Having an expert opinion on a property before you buy is better than paying for a professional to fix problems after your have purchased a real estate investment property.