Commercial real estate in Boston is experiencing a major boom right now. For those entering the commercial real estate field, things can be a bit overwhelming. Everything from small family homes on up to store fronts and high rises are available to be purchased, sold, rented, or even built from the ground up. Boston commercial real estate investors need a good place to start, in order to start or expand their portfolios.
Consider Your Level Of Experience With Commercial Real Estate
Few Boston commercial real estate investors have experience with large scale construction. Most make very lucrative careers out of buying, selling, and renting. If you are new to the Boston commercial real estate market, flipping houses can generate a lot of revenue quickly. If you are looking for something that yield long-term returns, consider purchasing a multifamily rental, or perhaps retail and office space which can also be rented out to occupants.
You Need A Budget
Before you purchase, renovate, build, or anything of that nature, you need to figure out how much you can spend. Your budget should include how much you are willing to spend on a property, the amount you can put into rehabbing and renovating, the cost of permits, listings, and more. Coming in under budget is great, but Boston commercial real estate investors also need to calculate for unexpected costs, as well. Keep in mind that most of the properties you purchase will not be new construction, and things like plumbing, electrical, and even major structural issues will need attention before a property can start generating revenue.
How To Finance Boston Commercial Real Estate
There are almost as many financing solutions as there are property types in Boston, MA. Many people who are new to investment properties start with conventional and SBA loans. Conventional and SBA loans can be used for storefronts, multifamily rentals, owners occupied properties, and even some hotels or motels. These offer all-purpose financing for a wide range of properties in the Boston area. For flipping houses and rehab projects, most use a combination of conventional loans and bridge loans. Bridge loans are typically used to cover immediate expenses on a project while the larger funding is still being processed. There are also mezzanine loans and construction financing available for even larger projects.
At Clipper Commercial Capital, we provide financing solutions to Boston commercial real estate investors, for transactions and projects of all sizes. Contact our offices today at 781-990-0710 to learn more.