So, you’re interested in commercial real estate investment, and you have some decisions to make. One decision that will dramatically affect your experience in the capital markets is whether to invest through a representative firm or to go directly to capital lenders. While your unique situation may dictate one option over the other, it’s certainly worth considering the benefits of each choice before deciding which path is the best investment for you.
There are many reasons why investors choose representation through firms for their commercial real estate investing needs. Let’s look at a few of the most common ones:
Access to Bigger Investment Opportunities
The average person looking to gain access to real estate investment might only see one option in reach: buying or building residential homes. Investors in this industry can either offer these homes as single-family rentals, multi-unit apartments, or even live in a home while renting out rooms or sectioned-off portions of the home converted or built as apartments.
The truth is, though, that the average person can access investment opportunities that far outweigh the gains offered through residential real estate. It’s well known that it isn’t uncommon to find multi-million, or even billion, dollar deals in commercial real estate. While you may or may not have a few spare million sitting around, the reality is that commercial real estate investment firms grant everyone more access to more deals – usually deals that investors wouldn’t be able to afford on their own.
Commercial real estate investment firms have vast networks of partners, meaning that exciting new deals cross their desks every day. They’re staffed with financial experts who have relationships with these partners to optimize negotiations, and because they work for commissions, you can rest assured that they are as invested in your success as you are. What’s more, investment firms have the luxury of offering multiple financing options which can be tailored to meet your needs by your advisor.