Investing in Commercial Real Estate in Hagerstown
When it comes to investing in commercial real estate in Hagerstown, there are a few basic things you need to look at: risk, how the property will be managed, and the diversity of your investment portfolio. Each of these attributes varies from investor to investor, so make sure that you know where you know where you stand as the investor before purchasing a property.
Risk is a relative term, and while one investor might find an investment too risky, another may be comfortable with that level of risk. When investing in commercial real estate in Hagerstown, risk can come from many different sides.
- Location: Depending on what your investment goals are, you might want a property in a high-end area to reduce the risk of tenants not paying, or you might want it in a lower-income area with lots of construction so that your property value increases. Take into account things such as the crime rate, average income in the area, and what the location will be like in 10 years.
- Industry: When buying commercial real estate in Hagerstown, the building will be best suited for a certain type of business. Whether it is made for a warehouse, retail, or business complex, understand the economics of the area. If you buy a space that is best suited for a retail store, but retail stores in the area are going out of business at an alarming rate, then maybe you should rethink your decision.
- Financing: Different properties might have different financing available. Whether you get into the deal with another investor, work out a financing deal with the current owner, or just borrow from the bank, make sure that you are comfortable with the terms and have some buffer. You don’t want to have to sell your personal belongings because you had two months without a tenant.
Do you plan on taking calls in the middle of the day because there is a crack in the ceiling? Maybe you want to go shovel the parking lot when the snow plow forgot to show up? If not, then you will need to hire a property manager. This will not only make the investment more turn-key, but it will save you money long term. Property managers have the relationships and the know-how to get things done right the first time. Don’t deal with the stress of playing property manager just to save a few bucks. If there is a slight decrease in monthly profit, it is worth the not having to deal with the hassle.
Buying a million dollars worth of commercial real estate in Hagerstown might not be the way to go if you have no money invested anywhere else. Commercial real estate is a great investment with high returns, but it should not be your only investment. Instead, it should be a part of a much larger investment strategy. If you are just getting into commercial real estate investing, it might be worth buying a property through real estate syndication or a partnership to negate your risk.
Talk to the Commercial Real Estate in Hagerstown Specialists
After looking at your risk, how you will manage your property, and your diversification, it is time to start looking at properties in the Hagerstown area. Browse the selection, and give Blackwolf Commercial a call if you have any questions. Happy investing!