“He who tries to catch 2 rabbits, ends up catching none.”- Zen Monk
Becoming a commercial real estate market expert is all about super focus. And that important part of being focused, is on the type of income producing property you want to invest in.
This strategy sounds simple until you start looking at the available properties, and your mind starts to think about all the possibilities.
You ever been to a buffett? Food everywhere. And after entering the restaurant, Are you one of these guilty people: You run to the buffett tables and fill up 3 plates. You got your chicken, your rice, your steak, your fries, your potatoes, and about 3 different drinks. 3 ice cream cones. I mean you filled up the table with plates of food. Do you finish it? Probably not. And guess what? You end up eating less food and lose your appetite.
Don't make this mistake with investing in commercial real estate.
Why? Because the commercial real estate investors that do well financially and over the long term focus on a specific type of income producing property.
Successful commercial real estate investors are not distracted by the money burning a hole in their pocket. They are selective.
It is vital to become really good at one type of property, then when you feel comfortable move on to the next one. Pick a type of property and learn all you can about this type of property.
Types of Commercial Real Estate
Now, if you are new to the commercial real estate investment game, you may be thinking all commercial real estate is the same. Nope. Far from it. Let’s start with the 10 types that are available:
1. Retail – Shopping Malls, Shopping Outlets, Strip Plazas,
2. Office - Professional Services: dental, taxes, businesses
3. Hotels/ Motels
4. Multi-Family Apartments
5. RV Parks
6. Mobile Home Parks
7. Industrial and Manufacturing
9. Mixed Use Property
10. Raw Land
Pick one, or at most two of these categories of commercial property and focus on them exclusively. Learn as much as you can about them within your market. If you try to learn about all of them at the same time, you'll lose your "appetite" for real estate investing. Information overload.
Make this type of property your expertise. Join a group, club or association and start socializing with people who are just as passionate about this type of income producing property as you. You'll begin to see the little things to be successful in this property type, boosting your chances of success.