Article by Duncan Wierman

As real estate investors are looking for new entry opportunities and ways to make bigger profit in the current economy, much of the typical and conventional “wisdom” that may work for some may not work for all.

A prime example is the so-called Commercial Gold Rush Foreclosure “Opportunity” This example of over-hyped real estate information from marketing gurus, is all about the “huge” profits to be made with commercial foreclosures. There are quite a few new expensive real estate courses being sold by these self-proclaimed gurus who seem to know everything about marketing and sales in the industry. But do they?

Thousands of new investors have been essentially taken in with these products. They have been enticed with the promise of quick profits and real estate success. The sales pitch about the opportunity involves snatching up distressed real commercial property and then quickly selling it for a profit. Their idea revolves around the assumption that building owners just want to walk away from their troubles by giving the property back to the bank. Since many banks do not want the bad debt, it goes to the assumption there are some good profit-making opportunities.

Typically, these courses purport to include information on where to look for foreclosure opportunities or how to legally “steal from banks”. These commercial real estate courses also teach methods for “capitalizing” on property owners in distress. The sales pitch is that all the new investor has to do is simply put new management in place, get the building rented out, then turn around and sell the property for “massive” profits. Since this is the “valuable” information they taut that give investors the inside track on how to get a hold of these so-called “goldmine” opportunities, it’s no surprise that new real estate investors have been buying (into) these types of products in droves!

The Flaw with Commercial Foreclosure Opportunity Products

On the surface, especially for newbies, the opportunity that could have them making huge amounts of profit is tempting and seems rather legitimate. However, these real estate courses are definitely not for everyone and frequently teach the process in much simpler detail than what it really takes to succeed in Commercial Foreclosures.

What DOES work in today’s real estate market is getting back to the basics of real estate investing and learning from the ground up! Though money may not come as quickly, the building of relationships builds credibility! This is KEY as a real estate investor, whether new or experienced. It is fundamentally VITAL to your success. In these economic times it can be difficult for anyone but especially for the “newbies” just coming on to the scene.

TRUE success in the real estate investment field involves market research, figuring out which commercial foreclosures represent good opportunities, and finding buyers for those properties. Finding buyers, especially in this rough economy is tough, it takes practice, it takes experience to know how to be a success in this business.

Like the California Gold Rush of its day, this “Commercial Gold Rush” will have both winners and losers, too. If you remember your history your will recall there were far few winners… True, some experienced investors and some new real estate investors can profit from these opportunities that are created by commercial foreclosures, BUT the many inexperienced individuals who have been falling for these fly-by night, expensive real estate courses promising RICHES are only doomed for failure. I highly recommend not becoming one of those “Sheeple”, following the crowd over the cliff… and Investing in Commercial Real Estate the tried and true way!

About the Author

Duncan Wierman is the creator of the Short Sale Automation System that real estate investors are using to streamline the process of short sales. For more information, go to http://www.ShortSaleAutomation.com

Article by Bruce Swedal

When most people think of real estate investment, they think of rental homes and apartments. However, current economic conditions make rental real estate riskier than ever. Even good honest tenants are subject to losing their jobs and being unable to pay rent. Furthermore, declining property values and rising taxes and insurance negatively impact profit potential.

Commercial real estate investment offers an attractive alternative to residential real estate. Leases are long-term and the checks are less likely to bounce. There are two basic types of commercial real estate investments: direct and indirect.

In direct commercial real estate investment, you purchase one or more business buildings. This option requires a large amount of capital and offers little liquidity. As the owner, you will be responsible for management and maintenance issues. Office buildings and manufacturing facilities usually provide long-term tenants and greater stability than retail establishments. But if you need your money, you have to find a buyer for the building. And again, you will have tax and insurance issues.

Novice investors have been burned by hidden environmental problems or zoning issues, so make sure to seek the advice of an attorney knowledgeable in commercial real estate issues.

Indirect real estate investments allow the smaller investor to enjoy the benefits of commercial real estate with fewer disadvantages. Funds from many investors are pooled and used for commercial investments. The fund’s directors hire managers and address maintenance issues. Furthermore, shares in the fund can be sold at will, improving investors’ liquidity.

There are many options in indirect real estate investments. You can consider the pros and cons of various investment types. For example, you may decide that America’s aging population makes medical building investments a “sure thing”. On the other hand, concerns about national health insurance issues leading to restrictive regulations in the medical industry may lead you to look elsewhere for investment opportunities.

The global marketplace makes it possible to invest in real estate anywhere in the world. However, differing regulations and politics may increase risk. On the other hand, rapid growth and profit potential may make the risks worth taking.

Like most investments, the costs of real estate investment shares have dropped considerably. However, the returns are still excellent compared to other investments.

And the real estate investors’ mantra “They’re not making any more land” is as true as ever.

You can go online to research major real estate investment funds. Maybe you can find the perfect commercial real estate investment to meet your financial goals.

It does not matter how many commercial real estate deals an investor goes through, they always have an established process that they utilize every single time to assure they cover all their bases and increase the likelihood of a great investment. Synergy has a lot of meaning in the commercial real estate market. By utilizing synergy of process and assets one can realize huge results and profits by making minor adjustments to strategy. Those minor adjustments can often mean the difference between success and failure.

About the Author

Denver Real EstateDenver Foreclosure Homes

Article by Rajeesh Nair

Investing in commercial real estate can prove very much profitable in the long run. It will also give short term benefits in the form of rentals. The first and foremost answer from most of the investors, when they are asked about the best way to invest money, would be to invest in real estate. According to many people, the best option is to go for investing commercial real estate, because of their unique plus points. These plus points are tempting many people to invest in properties which ultimately give good results because of the increased value of the real estate.

Along with plus points, commercial real estate investing will also have few minus points, which are generally seen in every kind of investment option. One of the foremost advantages of investing in real estate property is that it provides higher returns. When anyone is investing their hard earned money in some kind of investment form, he or she will be looking for higher returns. This is exactly served by the commercial real estate property. When compared to the returns from investments made on residential properties, the returns from the investments made on the commercial properties would be many times more. There is much demand for commercial properties and it would continue to increase in future also. Every business needs suitable place to cater its customers. Commercial real estate property when present in the right location, which is accessible to many people, will surely be considered as hot cakes. When you invest in commercial real estate, you can expect higher returns when the property is located in popular areas. When the commercial property is suitable to the business, businessmen will not hesitate to give more money in the form of rentals or lease amounts to the landlords. Landlords should ensure that the commercial property is developed in such a way to cater the businesses of different fields. Then they will have maximum chances to capitalize it. Prices of rentals or lease will be lower in residential portions when compared to the commercial properties. Hence landlords having residential portions will not be able to make high returns when compared to the investors who have invested in the commercial properties. Unique lease terms of commercial real estate property also make it tempting for the investors to invest in this kind of property. In general, the normal rental lease in commercial properties would be in the range of three to five years. That means, landlords or investors can be sure of getting higher returns for a fixed period of time.

After the completion of lease period, landlords or investors can have the option of increasing the rental lease price so as to make more profits. Most of the investors make use of these terms to increase the rental price after three to five years. In this way, they can enjoy higher returns on commercial properties. Also, when the commercial property is suitable for their business, no businessman would hesitate to pay the rental lease amount to the landlords and they would extend their rental lease period by signing for another three or five year’s period.

About the Author

Rebecca Lee is a well known Real Estate Manager who offers valuable and insightful tips on commercial properties for sale online. Find out more about apartment complexes for sale on our website.

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Article by Ken Fong

Because the bottom has fallen out of the residential real estate market, real estate investors have now turned to commercial real estate investing. Commercial real estate investing has many different options for the savvy investor. Some of them are as follows:

1. Investing in a retail shopping center as part of a joint venture with several other investors. This enables you to take less of a risk and get some experience in investing in commercial real estate without it costing you a lot of money. Make sure you know plenty about your partners as well as the property that you will be purchasing;2. New construction. If you have been a project manager or general contractor, you may be able to swing commercial real estate new construction as long as you are aware of the different codes. Commercial real estate new construction is much different than residential new construction. There are different building codes for commercial buildings that vary from different municipalities. You have to be familiar with the codes when building commercial property;3. Rehabbing or refurbishing older buildings and preparing them for business use. Again, you need to have some knowledge of building codes and requirements;4. Buying a storefront property or free standing store and leasing it to a business. You need to know about the location, make sure you have a solid lease with a reliable and stable renter and proceed to reap a profit on the rental income while paying off the property at the same time.

Those are just four examples of commercial real estate investing. No matter what you decide to do, remember the three most important aspects of real estate investment:

1. Location;2. Location;3. Location.

This is an old and well worn saying, but bears repeating because it is so integral to any type of real estate investment, commercial or residential. If you purchase a storefront in a blighted area it may be cheap, but unless you plan on working in the store all day and every day and worrying about getting robbed or murdered on a daily basis, stay away from blighted areas.

You want to make sure that there is a need for the commercial real estate you plan to develop or in which you wish to invest. Office buildings and complexes are usually always in demand as professionals and others are usually looking for cheap office space.

In older towns and cities, there are areas in which older homes are being turned into office buildings and stores. In “historic districts” in towns, there is an effort to refurbish older homes and increase the value of the property in the area. These are also an ideal option for those who are thinking of commercial real estate investing.

Use any knowledge you have regarding real estate when deciding on commercial real estate investing and make any skills you have work for you. By doing as much as you can with regard to construction, rehabbing or even property management, you can add income to your investment. Always remember to purchase property in a good location or up and coming location so that it will appreciate in value.

About the Author

Ken FongReal Estate Information.