INVESTING IN COMMERCIAL REAL ESTATE. THESE THINGS SHOULD BE CONSIDERED BY EVERY BEGINNING INVESTOR

How we measure success varies from individual to individual.

However, let us look at it through the eyes of modern man and define it as financial independence. In this case, we see a recurring formula in a number of people who have achieved it.

No matter what your background is, anyone can invest.

The first person in the real estate world that we will remeber is former US President Donald Trump. However, this magnate is not the only celebrity who has gained his wealth this way.

Whether they are actors, singers or simply celebrities, many of them know that the money, that sit in the bank account, loses value. Jennifer Aniston also multiplies her assets by investing in real estate.

STEREOTYPE: REAL ESTATES ARE ONLY FOR THE RICHEST

That has not been true for a long time. And if you are reading this article, you already understand. However, if you are embarking on commercial real estate for the first time, you should consider a few things.

In the first place, we distinguish between real estates according to whether they are residential or commercial. Today we will look at how to succeed in the field of the latter category.

A wise person learns from the mistakes of others and if you want to be successful, you should prepare well. Thats why…

LET’S BEGIN WITH THE MOST COMMON MISTAKES

1. Wrong investment

It sounds like a banality, but the wrong investment can really complicate not only your returns, but also your life. We divide commercial real estate into offices, warehouses, shops and multifunctional spaces. Each of these investment opportunities is unique, so you shouldn’t embark on something you don’t understand.

Multifunctional spaces, for example, produce high returns, but require intensive maintenance and management, which is an immediate stop for most investors. To save your worries, you must first understand the differences between these spaces and find the right one for your needs and expectations.

2. Be in a hurry

If you already know where you want to invest, don’t rush. While it may seem like you have found the perfect opportunity, it may not be so. The spaces you look for may have hidden flaws or disadvantages that you have no idea about.

Before you decide to push your finances into them, consult with experts about their condition, location and other relevant information. As the saying goes, look before you leap.

3. “I CAN DO IT ALL ALONE …”

Don’t burn yourself on your own ego. Many investors rely on their skills and intuition and refuse to accept the possibility that they could be wrong. This is especially true for beginners who underestimate the agenda and activities associated with investing in commercial real estate.

At Amigal Group, we offer a full service in the form of administration and management of the building that you purchase from us. Not only you know what you’re getting into, but you don’t have to worry about what your investment will ask for. We will take care of everything.

AND WHAT NOW?

If you can avoid the typical mistakes of beginners, then you need to think about what to do next. Once you have the coveted space, it is very important to know what you have to offer. You need to know not only all the parameters and benefits of your property, but also its weaknesses and know how to anticipate where complications may occur.

However, if it is too much for you, it will certainly not hurt to find a reliable administrator who will take over all similar responsibilities. You can spread your legs and enjoy the profits.

WHO WILL USE THE SPACE…

The next important step is to know your client or target group to which you want to offer your space. Based on this, you can anticipate what the client might miss or what might attract him.

Your tenant’s name is also very important. If Amazon, Google, or another large player moves into your premises, you will be able to expect a more stable (and higher) income than small or medium-sized businesses.

If there is a company with a big name in your building, the demand for more space in this building will also increase.

On the contrary, what you should watch out for is co-working. If the HUB moves into your premises, you have much less control over who uses your premises and how. At the same time, your property will be at greater risk of damage.

Such a situation would also require a detailed system of incoming and outgoing visitors and a sophisticated reception.

WHAT ARE MY OPTIONS?

1. Purchase

After considering all the steps to avoid and the advice to follow, you have several options.

The first option is to target advertising sites and choose the space you like best. You can then work with its equipment, interior, rental and tenants.

2. CROWDFUNDING

The second popular option for beginning investors is to engage in crowdfunding. The method of collecting money is popular especially in terms of charitable purposes. However, it also works to finance projects. The higher your investment, the higher your profit share.

Crowdfunding investments are a great school, but they will definitely not make you rich.

3. AMIGAL GROUP

If you have decided to invest in office space, Amigal Group offers a large number of investment opportunities.

You can choose office space from our offer.

After we look for the building, we turn it into commercial premises and provide construction and legal services. You can buy office units or entire floors.

You don’t have to be a multimillionaire. Our offer does not move in the hundreds of millions of euros, but in units. The space you choose can also be financed from a mortgage.

And if you are still not clear on how to start investing, contact us and we will explain the whole process step by step.