Nearly 90 percent of ultra-high net worth individuals receive and maintain their wealth by investing in real estate. It shows that you don’t necessarily need to be a techie or an entrepreneur with newfangled ideas to hit the 10-figure balance. However, you need to be smart when investing in commercial real estate to increase your wealth potential.

Here are five essential factors you must consider to ensure your commercial rental property earns you maximum profits:

Understand the purpose of the property

Buying a commercial property because you find a lucrative opportunity may seem like a no-brainer, but you should know the purpose of the property. It will help you evaluate both the short- and long-term financial viability of the project. Always buy a property with a plan that ensures you can earn healthy returns through lease income and capital appreciation.

Choose the right location

Find the right location for your commercial property. Always keep the business needs of your tenants in mind when choosing the area and space. For instance, businesses with remote-operations might be happy to work in out-of-town areas to save money, but shopfront businesses always prefer a central location as it puts them on the radar.

Evaluate the property condition

Always hire a professional to carry out extensive inspection and structural surveys to avoid buying a poor property. Again, it’s crucial to put yourself on your tenant’s shoes during the evaluation. If you want to target high-profile clients like lawyers and investment bankers, you should look for furnished properties.

Screen the potential tenants

Once you buy and prepare your property for lease, the only job that’s left is to look for tenants, but it’s easier said than done. When choosing commercial tenants, you must conduct a thorough screening process to make sure you lease your space to businesses with a good reputation and healthy finances to minimize the risk of default and other obligations.

The devil’s in the details

You should make sure all the paperwork related to property purchase and tenancy is airtight. It will save you from any financial and legal liabilities in the future. Work with an experienced business lawyer to ensure your rights remain protected. They will also help you negotiate better terms to help improve the bottom line of your real estate business.

Hire Professional Services of a Top Real Estate Investment Agent

Eleanor Curry is a leading professional real estate broker with extensive experience in Houston. Over the years, she has helped many commercial real estate investors find lucrative rental property investment opportunities to generate steady income. She has a vast knowledge of the local real estate market trends and an extensive network, which gives her a competitive advantage over the other real estate attorney in Houston.

Contact Eleanor today and let her assist you in finding the perfect property to maximize your wealth potential.