A real estate investing secret capable of teaching real estate investors how to invest in real estate without risk would be worth a lot of money. It simply does not exist. It is impossible to remove the element of risk completely from real estate investing.

However, there are some simple and proven rules that can greatly reduce the element of risk to acceptable levels. It concerns knowledge.

The real estate investor who has astutely followed the market for several months or more is better equipped to deal with investments in that area. This investor knows what property has been sold and rented for in the past and is aware of the current market conditions.

As the investor’s knowledge of the local area increases, opportunities that would never have been seen before start to stand out amidst the flurry of classifieds and rental property presentations made by real estate professionals.

Knowledge of the numbers is crucial. Real estate investors prudent enough to learn how to compute the ratios and rates of return that measure a property’s performance enhances his or her chances to buy a winner, and at the same time reduce the risk of over paying for a loser. Real estate investment software is readily available to do this easily for the investor.

As the investor gains this knowledge and information about the market and real estate investing analysis, and no longer must blindly feel his or her way through the real estate investment process, they will discover apparent opportunities that will give way attainable opportunities; not without risk, just less of it.

by Scott English

Editors Note: We are still very engaged in updating our real estate investing software. Until then, we are glad to post this article about investing in commercial real estate for subscribers to our real estate investment software blog.

Commercial real estate is a type of property that generates cash flow for a business and is generally very expensive. The other common way to achieve exposure to commercial real estate is through REITs. Clearly, the business of commercial real estate is an ever-expanding investment market that is here to stay.

Commercial

Commercial real estate loans are normally long term loans that are very large in size. Commercial real estate investments can be broken down into basic asset classes, each with unique set characteristics that address a wide range of investor needs. Commercial properties are generally classified by type of use, such as Residential Rental, Office, Industrial, Hospitality, Land, and Retail. Commercial real estate is all about supply and demand.

Office

Office: From downtown high rises to suburban office malls, this specialty is a large one in the business of commercial real estate. By doing their own due diligence, small investors can invest directly in a variety of commercial real estate properties, such as free-standing retail locations, apartments, small office buildings, mobile home parks, etc.

Investment

The buyers are needing to see a faster return on their investment so in turn are having sticker shock when it is time to renew or sign a lease. If the new owners are raising their rents to recapture their investment, other property owners are just as happy to raise their rents in tandem. Direct investment in properties as a self-guided investor either individually or through small partnerships, LLCs or tenants-in-common [TIC] arrangements.

Properties

The best way to price your property is to gather information on what other commercial properties are doing. The basic appeal of Residential Rental or Multi Family properties is that we all need to live someplace, regardless of what the economy is doing. Examples of commercial real estate investments requiring little or no management are triple net lease single tenant properties (Walgreen Drug Stores for example) or Tenants in Common properties.

Clearly, the business of commercial real estate is an ever-expanding investment market that is here to stay. The process of financing, developing, constructing or managing commercial real estate is a fluid and ever-changing process that is increasing in complexity, requiring specialized knowledge and skills not generally found within most organizations. This sounds easy only in theory, but renting commercial real estate is not always simple. Overall, renting commercial real estate is a great way to make money.

About the Author

Scott English. Full time Licensed Realtor in South Florida . Specializes in waterfront properties, relocation, new construction, condominiums. Any and all real estate needs. Visit http://www.RealEstateExplainedBlog.com for a free 7 day course on current Real Estate Challenges.