Commercial real estate is a very lucrative field. There’s always a demand for commercial real estate. But commercial real estate is more than that. It’s also a dynamic field that’s always changing. There are also always opportunities to build new supply, or re-make aging spaces. This is a field that’s a great fit for anyone with vision and drive.
There are plenty of ways to get in on commercial real estate. People can buy shares in commercial real estate companies. For very small investors, buying shares of an REIT is a good way to get in on a variety of commercial properties. However, the big money in the commercial real estate world is made in three roles. Investors, developers and brokers make the big money in the commercial real estate world.
Perhaps the best way to build wealth in commercial real estate is to buy properties. Long-term ownership and good portfolio management are important when it comes to real estate investments. While people tend to think of commercial real estate investors as moguls, this is far from the truth. The most common form of commercial real estate investor is the owner of a small 4- or 6-unit apartment building. Investors can save up income from one such building to invest in others, or to fund other projects.
Developers can make big money, but they also assume the most risk of anyone in the commercial real estate game. Developers need to be supremely self-confident and willing to take risks. The skill developers need more than anything else, however, is fund-raising. Developers also take on huge amounts of debt in their line of work. It’s a stressful, demanding job. Resiliency is important in the commercial real estate development world. Even the biggest names in the business, like Donald Trump, have to weather real setbacks.
Real estate brokers can make big money. Anyone with a knack for this field can be earning six figures by year two or three of their career. The first year is rough, however. Real estate brokers work purely on commission. Brokers aren’t just in the business of sales. A good broker becomes more like an advisor. Developing good relationships with clients can ensure repeat business for years to come.