The Beginner’s Guide to Commercial Real Estate Investing
Commercial Real Estate offers significant opportunities for investors of all backgrounds. With a vibrant and diversified economy, South Florida is a major market for Commercial Real Estate Investing, offering a wide variety of commercial properties that suit almost every portfolio.
However, like any investment, the risks can be as great as the rewards if you do not work with qualified real estate attorneys who have experience in this area. My team and I have helped investors from all over the world achieve big returns in Commercial Real Estate Investing while reducing their liabilities.
Please take a moment to learn what to look for when investing in commercial real estate and how Jurado & Farshchian can help.
What is Commercial Real Estate?
Any property that is being used for a business purpose falls under the broad category of commercial real estate. They run the gamut from storefronts and gas stations, to apartment buildings and strip malls. Most commercial real estate is sold by building — one office building, one warehouse, etc. — but some developers may sell parts of a larger commercial development. The varied selection of options, particularly in a metropolitan area as large and fast-growing as Miami’s, means you will have an opportunity to diversify your investment assets and sources of revenue.
Why Commercial Real Estate?
The principal advantage of Commercial Real Estate Investing over other kinds of investing is that returns can be generated not only through the sale of the property after appreciation, but also through rents collected from tenants. Commercial properties also benefit from having generally longer lease terms than residential properties, which betters your chances of a stable cash flow.
The Challenges of Commercial Real Estate Investing
No investment is without risks. For all of its rewards, commercial real estate can pose many challenges to even the savviest investors. We have had to assist investors with years of experience in navigating the regulatory, legal, and practical hurdles that stand between them and steady returns. These issues and obstacles include:
- Rules and Regulations — One of the biggest deterrents facing commercial real estate investors are the layers of federal regulations, state laws, and local zoning requirements that place special constraints and requirements on commercial real estate acquisitions. Foreign investors will be especially hard-pressed to know all the relevant, ever-changing legalese that applies to commercial real estate investing. We are up to date with all the relevant legal and regulatory changes at all levels of government that impact commercial real estate investing. We scrutinize every potential investment to be certain what laws and requirements apply and provide assistance in compliance.
- Capital Expenditures — Depending on the condition of the commercial property and what you have in mind for it, you may need to invest additional capital beyond the acquisition, such as for rehabilitation, refurbishing, or expansion. These projects will require you to hire contractors for supplies and labor, which leaves you open to cost overruns and liabilities. We specialize in drafting, reviewing, and negotiating the contracts you will need to improve upon your commercial real estate investment.
- Property Management — Consider whether or not you will be directly managing the day-to-day maintenance and administration of your commercial properties. If you plan on hiring a dedicated property manager, be sure to factor the subsequent management expenses into your evaluation of the purchase price. We can assist you in preparing an airtight and effective agreement between you and your property manager that will protect you from further liabilities or disputes down the road.
- Greater risks. Commercial real estate is often riskier than residential real estate because they tend to have more visitors. The more people patronizing or visiting your commercial spaces, the greater the likelihood of an accident leading to a possible lawsuit against you as the owner. We can continue to serve as your dedicated legal counsel for as long as you require, offering accessible and vigilant services to safeguard your investment for years to come.
Who Should Invest?
Commercial Real Estate Investing is best suited for individuals with knowledge and experience in the industry and its myriad legal aspects, or who can hire those that do. You should not allow the inherent risks and complexities of the market discourage you from the potentially big rewards it can offer. We are ready and willing to help you maximize your returns and minimize your liabilities regardless of your investment goals. Please contact 305–921–0440">305–921–0440 or email me directly at romy@jflawfirm.com to learn more about the benefits of partnering with Jurado & Farshchian.
Read more at The Beginner’s Guide to Commercial Real Estate Investing
