“There's a lot more people open to seller financing in commercial because right now, it's a very viable option and it's a way for them to still yield additional capital off of a sales price,” shares commercial real estate broker Lance Somerville. Lance draws on his 22 years of experience to give commercial real estate investing tips and a trend prediction for the Colorado real estate market in the coming years.
If you are considering investing in real estate, first you must decide if you want to be an active or passive investor. Think about whether you plan to manage the properties yourself or if you want to hire someone. If you choose to live in your first property, buy a fourplex and rent out the other units. This can help you expand incrementally while you build more capital instead of tying up all your funds in larger projects.
Investing in commercial real estate can be a fantastic way to build wealth. Whether you choose to invest by acquiring your own properties or going in with a group as a non-accredited investor, there are many avenues for getting started.
“When you purchase a property and you get your first tax bill, and they're trying to increase it, protest it. You need to protest it.” (26:30-26:40 | Lance)
“There is a huge difference in performers and actuals.” (28:42-28:46 | Lance)
“You have to be proactive and just don't make any assumptions that they've given you numbers that are 100% real.” (28:56-29:08 | Lance)
“Know what the zoning is depending on what you're trying to invest in, and know what the city will allow, and then look at maybe reports on what's coming out of the ground, and then you can make better educated decisions.” (36:11-36:26 | Lance)
“There's a lot more people open to seller financing in commercial, because right now it's a very viable option and it's a way for them to still yield additional capital off of a sales price.” (37:20-37:33 | Lance)
Connect with Lance Somerville:
REMAX Commercial Alliance
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