Over the last five to ten years, many traditional investors have shifted their focus towards commercial real estate. Many of these new investors are attracted to the fact that there is at least some level of predictability concerning returns on investment. Commercial Real Estate Atlanta investments have seen a significant rise in the median building age. The current median building age for office space in Atlanta is around 30 years old. There are also over 6,700 net new jobs created every month in the metropolitan area of Atlanta (the most populated city in Georgia).
Commercial Real Estate investment plays an important role in the overall economy. Commercial real estate properties like retail stores, shopping malls, warehouses, among others, are usually bought by investors to generate income. Commercial real estate is very popular among traditional real estate investors because of the all-cash purchases done for properties where retail stores or hotels are being bought.
How To Invest In Commercial Real Estate Atlanta? In order to become a real estate investor, you need to make sure that you have the money to start this business. If you don’t have at least $50,000 or more for a down payment, then you should save your money until you have enough to purchase your first commercial real estate property. Cash is king in commercial real estate, which means that if you do not have enough to pay for the entire property in cash, you will not be able to purchase it.
The first step is choosing a commercial real estate investment strategy. It’s best that before investing in anything, you research the industry to know how things work here. You can start your research by looking into some of the most popular commercial real estate investment strategies. A few examples are flipping properties, buying for rental income, or buying and holding. Once you have chosen your strategy, it’s time to start searching for properties.
Finding the right property is probably the hardest part when investing in commercial real estate in Atlanta. Ideally, you will want to purchase a property with low maintenance costs, good cash flow, and close to good schools or in an area where there is a commercial activity. You do not want to purchase too much of one particular type of commercial real estate investment. A balanced portfolio diversified among all types is what you are looking for.
Leverage is another important factor in commercial real estate in Atlanta. In order to get more money for your investment, you can decide to take out a loan that is typically paid back with interest. You can also decide to search for an investor (or even become one yourself) that has the capital to purchase the property and then rent it back to you.
Whether you want to purchase a property, lease out your investment or do some renovations, it’s important to work with professionals. Working with realtors, government agencies, and contractors is the best way to ensure success of your investment.
