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First Commercial Deal—What Went Wrong? | Investors Round Table
Description
Key Takeaways:
Underestimating renovation costs and working with inexperienced contractors can lead to major challenges on your first commercial deal. It's important to work with seasoned professionals who can provide accurate cost estimates.
Creative financing options like investor partnerships and seller financing can help new investors get started in commercial real estate without having to put up all the capital themselves. However, you need to carefully structure these deals to ensure they are beneficial for your role.
Thoroughly reviewing leases, tenant information, and potential capital expenditures is crucial when evaluating commercial properties, as the income and expenses are the key drivers of value.
Don't be afraid to take the plunge into commercial real estate, even if you're a beginner. With thorough due diligence and learning from others' mistakes, you can find success, even if your first deal isn't perfect.