Venturing into commercial real estate can be profitable provided that you have enough funds for it. Now, assuming that you do have the millions for it, the next thing important thing that you should have is the right attitude and smarts to go about the business of acquiring a commercial property.

What are the things that you have to do in order to make a successful break into commercial real estate?

1. Call up a broker and ask information about that piece of land that you have been eyeing. They can give you details such as the asking price. Don't be so eager to talk with them about your visions about the land though. Brokers will leap into any new ideas that can help them market and sell the land. And other people may buy it from them.

2. Next, you have to know information such as building height restrictions and the allowable amount of building space. It is necessary that you ask for this, because even though you own a parcel of land, you might not be able the size of that land if their is a building restriction that is smaller than your total square feet. Chances are, you may have to follow this rule and build according to the area limit, because getting a conditional build permit is very difficult, and not everyone is given one.

After this stage, you have to search for reputable contractors in the area. You can do this by inquiring at the Chamber of Commerce. After getting the names that you want, you have to contact them and ask for an estimate for building and design costs.

Now that you have gotten the information that you need, you have to think all this through and piece together the costs that will be involved with the project - the price of the land, construction costs, and fees that you might have to pay the city where you plan to build your property. After tabulating all costs, you can now tour around the area and inquire about the going rate for office spaces. In this way, you can determine if your planned investment will be worth it.

Needless to say, the first step into a successful foray in commercial real estate is to do your homework and learning how to ask the right questions in the right manner from the people who can give the information that you need. You have to be especially courteous to brokers, contractors and designers who you will probably do business with if your project steps into development stage. After you made your initial deposit for the land, you have to move fast to get the development and construction together. In real estate, it is not only location that is important. It is also about finishing the development right on schedule, or possibly before it, without compromising the quality of the building.

The technique here is not to divulge your ideas for the property while you are still in the process of purchasing the land. People with more cash can steal your ideas and purchase the land right under your nose, AND adapt the ideas that you conceptualized in the first place.

Yeah, that's a good idea. I tend to bypass brokers though, since they all ask for outrageous prices.

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