For those with a determined mind to get involved in commercial real estate, the challenges are overcomeable. But for many, the idea of owning income producing property seems out of reach. One of the biggest reasons, is people are intimidated by it.
On the outside looking in, it does seem rather complicated. Maybe that’s deliberate on the part of industry insiders and maybe it isn’t. The fact is, to more people it looks intimidating and causes many people to think twice about the industry as viable investment and income generation vehicle.
This can even be seen in real estate professionals. Many residential real estate agents mistakenly think you have to graduate to from residential to commercial. That commercial real estate by comparison is “the big leagues”.
In a certain way they are right. The deals ARE bigger. The sales strategies may be different, but the underlying principles are the same.
So let’s dispel this myth right now.
Commercial real estate can be complicated--but only if you try to do it yourself.
Look at it this way: Let’s say you needed to suit someone because you have been needlessly harmed.
Now, would start visiting the law library and figure out how procedures and strategy to file a lawsuit?
Probably not.
As you’ll probably agree, to the uninitiated, filing a lawsuit is complicated. It’s almost view as a black art. Yet, people do it everyday. How? They use the services of an attorney. With them doing your bidding, there’s really nothing to it.
Or let’s think even simpler and more common place. How about traveling by plane? Few people by comparison know how to fly a plane. Yet, the majority of people fly every year.
So what’s the truth?
The truth is don’t make things complicated by doing them yourself.
Sure, it does help to educate yourself. Books, seminars and courses are definitely useful as a way to understand how to make money in commercial real estate from a strategic advantage. It does take some education so that you know the market you want to invest in.
This is where you, as a commercial real estate investor should spend the majority of your time. Don’t get caught up in the minutia and technicalities of finance, taxes, or law. Leave that to the experts. Leave that to people who do it day in and day out.
That’s their domain of expertise.
Leave the complicated stuff to the people who know how to deal with the complicated stuff—you do what you know how to do best.
So as you can see, there’s no reason to be intimidated. The benefits of investing in commercial real estate far outweigh the unforeseen complications you may occasionally come across. And even then, there are experts who can support you in your efforts. They are rather inexpensive in the over all scheme of things.
The only time they get expensive is when you try to “do it yourself” and screw it up.
In closing, this myth serves a purpose to industry insiders. It creates a “barrier to entry”. It keeps ordinary people from making the jump because they think “it’s too complicated.”
Now you know better. And now, you have a strategy for success—Use the experts. That’s what they are there for.
Tony Seruga, Yolanda Seruga and Yolanda Bishop of http://www.maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.
