Investing in real estate can often be viewed as a gamble. In reality, however, it’s almost always more about strategy than luck.

1. Search for up and coming locations. Purchasing commercial properties in emerging markets is the best way to profit from real estate investments.   The metro Denver commercial real estate market is now nationally recognized as one of the best up and coming commercial real estate markets in the country. This is true in all sectors of the market.  It may sound like a cliché but the old saying “timing is everything” is absolutely true.  The time to look at metro Denver is now. When you can combine the chance to invest in one of the country’s best commercial real estate markets and also be able to consult with Montegra Capital, recognized as one of the country’s best private capital lenders then “opportunity knocks” for sure.
2. Check out properties with varied purposes. Don’t limit yourself to a single type of commercial real estate. Instead, watch for good deals on properties in good locations, regardless of their function—whether it be office space, hospitality, retail, manufacturing or multi-family.
3. Watch for high-yield opportunities. You can make money off real estate investments even if the property value doesn’t increase dramatically. Rental properties can produce steady monthly income, especially in the current market which is heavily favoring landlords. Metro Denver is now experiencing the lowest multi-family vacancy rates in a generation and apartment rental rates are steadily climbing. There is also a consensus that office rental rates are now moving up and industrial/warehouse rates are poised for increase in the near future.
4. Stay current. Keep abreast of current events as these can have a greater effect on property value than many people realize. Having knowledge about the health of an area’s economy or any major sporting events or development projects that are planned for the near future can help you better decide when and where to invest. For more information about the Denver real estate market, check out our blogs here.
5. Diversify your portfolio. It’s nearly impossible to avoid all the potential pitfalls and losses that may occur in real estate investing. The best defense is to invest in varied assets. Choosing properties in diverse locations, rather than all in the same neighborhood, and that have diverse uses, instead of focusing on a single industry, may be the best way to protect yourself against losses.

How can hard money help you invest in commercial real estate? Instead of having to slowly build your portfolio one property at a time, a hard money loan can help you leverage your investment funds so that you can purchase several properties or larger properties. Private lenders are also more willing than traditional lenders to extend financing for rehabilitation or renovation projects, making it easier for investors to turn a problem property into one that produces profit. The fast turnaround on the underwriting for hard money loans also makes them beneficial to investors who need to close on deals in a quicker timeline than is possible when working with a bank. For these reasons and others, establishing a good relationship between yourself and a respected hard money lender can be a key part of successful commercial real estate investing.

This blog was written by Bob Amter, President of Montegra Capital Resources, LTD., a Colorado hard money lender.  [google_authorship] has been in the private capital lending business for 41 consecutive years.