Mike Eisenga, former mayor of Columbus and real estate investor, shares things one should know before investing in commercial real estate.
August 6, 2021 /MarketersMedia/ —
Mike Eisenga, an accomplished real estate investor, has a history of creating and operating successful businesses while committing to property investing, development, and construction. He believes that there are a few things a new investor should consider before pulling the trigger on investing in commercial real estate.
Those who want to get into commercial real estate should familiarize themselves with a few basic industry terms, including bidding war, earnest money, tenants, dollar per square foot, and bad title. Intermediate terms are also good to grasp, such as private money loan, loan to value, hard money loan, A, B, and C building classifications, assessed value, and principal reduction.
“Becoming familiar with commercial real estate industry terms will help new investors make better choices and know what to look for when scouting a property. It will also help gain a more educated awareness about the market,” said Michael Eisenga.
Knowing the market and market trends’ impact is vital for proper guidance on properties worth having as an investment. The year 2020 affected the property industry with the coronavirus pandemic, smart building technologies, homebuyers moving from urban to rural or homebuyer demographics, and job growth in specific markets. Those set on investing in a particular area of commercial real estate such as retail should understand the trends that directly impact an investment.
Another thing to consider before starting on a commercial real estate hunt is to remember that the process of commercial real estate buying and selling differs from residential real estate. Buying a house takes much less time from start to finish than commercial real estate, where every step takes a little longer.
Investors interested in getting into commercial real estate should know that the commitment to invest is not always a passive role. Highly successful real estate investors like Eisenga are very active with their real estate investments by establishing processes and systems that guarantee that the investment property meets its top operation possibility. To learn more about Michael Eisenga, visit his website www.michaeleisenga.com.
About Michael Eisenga
Michael Eisenga is a commercial real estate investor, entrepreneur, and proud father of three boys. His wide range of skills includes commercial real estate investing, property management, assisting living facility operation, leadership, strategic planning, public policy, and community outreach.