The fastest mode to make sufficient income with commercial premises is to do upside deals. But what is upside anyway? We’re not talking here about paper value increment because of scheduled rental increments, or substituting below market tenancy, as lots of commercials determine it.
Our upside definition is to open unseen potential in a building that produces triple digit investment gains, supplies good cash drive and eludes main losses or risks. Upside deals may come from redevelopment, expansion, or by altering the property’s market set-up with major betterments. It all comes down to the local market situation and the seller’s attitude. If both take their places, you might not be worrying about taking the deal.
Note that contemporary market is regent. The local market is above all things, and you should keep this in mind. Regardlessly of property kind, the fist real estate investing rule is that we don’t create markets, but we serve them. The first priority is to make certain that the local demographics, incomes, and employment are in a good tendency, otherwise the market will turn poor and you’ll be unable to do anything, but lose finances. This means you would have to make a research on the past 3-5 year period to observe the trends.