Real estate is typically a safe and highly profitable investment. Commercial real estate can provide a significantly larger income and profit than residential real estate. However, you can also experience a much greater loss if you don’t do your due diligence and follow a solid plan. Therefore, consider these tips for achieving your commercial property investment goals.

Create a Detailed Vision

Define your vision clearly. This is your pie-in-the-sky vision. Financial restrictions don’t exist. Would you own homes or commercial properties? How many? Where would they be located? Would you manage them or hire a management company? State why you want to invest in real estate and what about it would make you proud.

Now, get a vision for your life. State whether real estate would be your primary business or something you do on the side. When do you want to retire? What kind of work commitment do you desire? Are you looking to supplement your income or replace it, or do you just want a cushion for retirement?

Set Solid Goals

Your first step in achieving your investment goals is to set them, but use your vision to set your goals. You need to decide what type of real estate you want to invest in: residential, retail, restaurant, office or multifamily, to name a few. What size properties are you interested in purchasing? Are you willing to do improvements? How much do you want to invest? Also, identify how you will handle financing these projects.

Create a budget and timeline for your first purchase. Then, set one-, five- and 10-year goals.

Find a Mentor

Real estate investment success requires a great team. Your first team member should be a mentor. Look for someone with extensive experience who is willing to take you under their wing. These professionals should be willing to show you their processes, from start to finish. You should be able to sit in on negotiations, work through their due diligence process and review their finances and profits for each deal. Then, your mentor should be willing to walk you through your first deals. These individuals may even want to partner with you on your initial purchases to spread the risk.

Develop an Investment Strategy

Now that you have some experience with your mentor, develop your personal investment strategy. Identify your desired investment locations, property types and their features. Then, create a property evaluation plan that includes return on investment and other key ratios. Work out your purchasing strategy. Build a team, including realtors, mortgage brokers, real estate attorneys and contractors, that can help you through the process.

Although it may seem daunting and scary to start investing in commercial real estate, once you have your vision and goals set and have worked with a mentor and developed your strategy, you will be excited, not intimidated, by this investment opportunity.