For those who live in Bangladesh, it is no secret that there is a lot of money to be made in commercial property. This includes those who are looking to do construction as well as those who invest. It can even be for those who wish to open catering premises.
For investors, there are some keys that will open the door to being successful. They cannot all be explained here, but if you are willing to use the guidance we provide as the foundation for what you do, the results will be remarkable.
The advice here will be strictly for those who want to become investors, not business operators. While business owners do make investments into their establishments, the difference is that while those who occupy commercial real estate may be in the business of selling clothes, repairing electronics, or even running a news agency, the business of a commercial real estate investor is that of actually owning and operating commercial real estate.
Among the important things one must do as a real estate investor is review many properties before making a final decision. This is because the purchase is an incredible investment and should not be an emotional, but practical, process. This is why so many investors have been reading the work of a US author named Dr. Robert Pascale; specifically, his book, The Retirement Maze.
Review Many Properties
During the early 2000’s one of the most influential thinkers on the subject of real estate investing was Robert Kiyosaki, author of Rich Dad, Poor Dad and Retire Young, Retire Rich.
In recent years, Mr. Kiyosaki has been revealed to have declared bankruptcy as a strategy for avoiding the payment of his bills, but he did have one great piece of advice that should be followed: look at 100 deals, make offers on 10, and buy 1-3 properties.
For many investors who begin their journey into the world of real estate, the first property always looks amazing. There are so many possibilities for what can be done, the legacy the property will bring, and how rich it will make you. However, the first property you see needs to be compared to many others.
Just like making friends, you don’t know if what you have is something special until it has been compared to what something else has to offer. For instance, a property may have plenty of floor space and a great price, but is it near anything? Another property may have plenty of traffic, but it is out of your price range.
Do not look at any piece of property as though it is special. The most important thing is whether or not it will bring you a profit from the start, because the money you make in real estate is not made when it is sold, but when it is bought.
This means that on the very first day you buy the property it can be sold for a profit. Although this is not the intent, it is important to remember that you would not buy a car for more than it is worth, so why would you buy a building for more than it is worth?
When you make money on the buy, real estate is a great investment.
Take the Emotions out of Investing
When it comes to investing, there are going to be some emotions involved, but the decisions you make should not be based on emotion. They need to be based on business thinking.
For example, many investors wish to own property in Dhaka. It is a sign of having “made it.” But there is much money to be made, and for a better price, in outlying areas such as North Rupshi and Pagla. The reason for this is because there is less competition for the property, but still a strong need for what is offered.
Additionally, when looking at a property, how it appears should not matter as much as how it appears on paper. For example, if you had to choose between buying a distressed fueling station that earns a 10% profit or an upscale fashion store that costs a 10% loss, it may look much nicer to say that you own the fashion store, but it will be much nicer to own the fueling station.
When you buy properties that earn you a profit of 10%, you can continue to buy more and more of them. When you buy properties that cost you 10%, you cannot buy very many before you become completely insolvent.
It is important in all of this to remember that you are planning a business and the life you have when you no longer wish to work.
Heed the Advice in The Retirement Maze
When you have enough properties you can stop working. For those with the freedom to live how they wish with passive income that provides for them, the options one has in the maze of retirement are plenty.
This is why renting out property is so popular, so long as the shop premises are profitable.
Those who do this well end up being much happier in retirement, but others who do not are miserable. This is all discussed in the book, The Retirement Maze.
The keys to being successful in the field of real estate investing are as follows.
Review Many Properties
Don’t be Overly Emotional
Follow the Advice of The Retirement Maze
The more properties you see, the better a decision you can make. You need to see 10 properties for every one you make an offer on. The decision cannot be one of emotion, but of profit and loss. And when you do this correctly over the years, you will be able to retire well, and possibly early.