If you’re looking for a lucrative side hustle that could eventually become a full-time business, commercial real estate is one great option. Commercial properties tend to offer higher returns and longer lease terms, and it’s usually easier to find qualified tenants. That said, you can’t just jump into the market and expect to make a success as a commercial realtor over night. One important thing to remember is you need business insurance in St. Louis.
To help you get started, Insurance Advisors of Saint Louis has answered some of the most common questions about this career path—and provided some useful resources to help you along the way.
Q1: What administrative hurdles do I need to clear to start a commercial real estate business?
A1: You will have to pass an exam to get your license and register your commercial venture as a formal business entity. These resources take you through it step-by-step.
- Do you want to operate as a real estate agent, a Realtor®, or a broker?
- Licensing requirements according to state
- Registering your business as a legal entity like an LLC
Q2. How do I choose high-value commercial real estate properties?
A2. Before investing in a commercial property, do your research regarding its potential for return on investment. These tips will help.
- Characteristics that make for valuable commercial real estate
- How to calculate return on investment (ROI) for commercial properties
- Tips for evaluating a commercial property’s location
Q3. What will I need to purchase my first commercial property?
A3. Closing a commercial real estate transaction means clearing certain financial and logistical hurdles. Here’s what to expect.
- Types of commercial real estate loans
- Prepare for the seller to ask for earnest money
- Educate yourself about ALTA surveys, which are often a condition of closing the deal
Q4. How can I ensure a successful commercial real estate business moving forward?
A4. Working with the right professionals to support your success is essential. You also need to think about advertising your properties for rent. For example, you can use tools to create your Facebook ad campaign, should you choose to go that route. The following service providers can help.
- A property management company will keep things running smoothly
- How to vet commercial real estate tenants
- Insure your business with the help of Insurance Advisors of Saint Louis
A well-run commercial real estate business can reap significant rewards. Taking the time to get it set up in an organized fashion will create a framework for success. Use the resources above to guide you through the process and don’t forget to contact one of our independent insurance agents to help with all of your business insurance needs.