If you love getting into the world of real estate but the idea of spending your effort and time to the top of the problem solver appears to be too much work, you may have an interest in looking into the world of commercial business venues. Buying an office block, warehouse, or storage unit to then rent out to a small startup can be a lucrative way to make a little extra cash. If you’d like to pump some of your hard-earned savings into a side hustle rather than watch money languish in your bank account, see how real estate could be the answer.
Location Is Key
While the location of any property is extremely important if you want to make money from it, it is even more apparent with a place of business. Buying an office with no transport links, no chance of getting around, in a crime-ridden area and in the middle of nowhere may be cheap, but you will not find much use for your space no matter how modern it’s. Instead, search the area which is full of startups. Small businesses want like-minded companies as their neighbors to drive physical traffic to a location. How many times have you seen a dozen or more sandwich shops on one street? Competition, although difficult to navigate, facilitates greater opportunities to make money, which every startup seeks.
Choose a downtown location, do not skimp on the acquisition price, and examine square footage. You are far better off buying a smaller office in a better location, rather than an enormous space that nobody wants to rent.
Modernize
Just because you own a profitable chunk of real estate in a healthy location does not imply it should slip out of your hands the first entrepreneur I saw. You need to woo your potential clients with a business lifestyle. If your office space has beige carpet floors, polystyrene tile ceilings, and damp around the windows, nobody is going to rent it from you. It’s up to you to ensure it’s fit for purpose, in the same way a real estate owner does with his housing portfolio. Take out the white paint, use the very best quality commercial cleaning servicesput up some cool art, put some zones and collaborative pods in the space and set up a decent WiFi router and server.
Businesses want to enter the premises, get their equipment out and get to work. If you can facilitate this, you are more likely to hire quickly and receive strong returns in return.
Use the Right People
Your property listing needs to be done wisely. Don’t fall for the patter real estate agent who swear they can reach unrealistic rents for you. Your property will wallow in the market for months. Instead, look for agents who have high stock turnover, long client lists, and who are proactive in securing delivery. Yes, the commission may be less, but you are paying for a really fast service. Renting out your office, warehouse or unit quickly is paramount to make sure that money can be recouped quickly.
Investing in real estate on the side is a popular way for amateur investors to make money. Follow this guide and examine commercial real estate for your portfolio.
