o, 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.
Bigger opportunities with multiple finance options are only a few of the many benefits of hiring a company like Pioneer Realty Capital for commercial real estate investments and loans.
Avoid Mistakes by Using Financial Experts
As you can probably tell, these financial experts can also help to drastically reduce your workload. Consider, for example, an investor who chooses to buy an apartment complex and collect revenue through rent. As a direct owner, a lot of responsibility comes with such a decision: who will manage the building? Who advertises available apartments, and shows them to prospective tenants? Who follows up when tenants have a maintenance issue or are late paying rent? Who performs the maintenance?
Managing an apartment is a lot of work, and while you’d think an easy solution would be to hire a manager, accountant, maintenance team, etc., the owner still must balance those costs against the gains on their investment. This can take a surprising amount of work.
With a representing commercial real estate investment firm, none of this needs to be your concern. With these investments, you are most often a part-owner with one responsibility: provide capital so that everyone can reap the benefits of an investment’s success.
In addition, an investment firm will also have already done all the research for you on where the best leads are today. No need to shop around: a finance professional will lay out your portfolio options simply and concisely, and they can answer your questions without hours spent sifting through proposals.
Pioneer Realty Capital will lay out your portfolio options simply and concisely, and they can answer your questions without hours spent sifting through proposals.
Personalized Goals and Investment Plans
Of course, one of the best parts about having representation by financial experts is the opportunity to have your personal goals and interests factored effortlessly into your portfolio. A commercial real estate investment firm like Pioneer Capital Realty, Inc. can assist with evaluating your finances, setting realistic and achievable goals, and creating an investment plan that work for you. This personalized advice and the relationship you form with your representative will be the cornerstones to your investment success.
If you are interested in representation in capital markets, reach out to Pioneer Realty Capital to connect with a financial professional today.