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After narrowing down the primary reasons for investing in commercial real estate and identifying the purpose a property will serve, you can begin the search for a property that aligns with the investor’s goals and risk tolerance. 

Here are five steps to help find the right fit:

1. Seek professional advice: It is always a wise decision to seek the advice of a seasoned CRE broker or investment advisor when considering purchasing commercial real estate. The process is complex and an experienced buyer rep can help evaluate potential investment properties, assess an investor’s goals and risk tolerance and provide valuable market insights and knowledge. A seasoned buyer rep will also help you streamline the following four steps. 
2. Determine the investment goals: Prior to looking for properties, it is important to identify the overarching investment goals. What’s more attractive, a long-term hold or a short-term flip? Is it a steady income stream or a high return on investment? By understanding the goals, it’s easier to narrow down the search to properties that fit your investment strategy.
3. Assess risk tolerance: Every investment involves some degree of risk. It is crucial to understand risk tolerance and find a property that supports the investor’s comfort level. If a low-risk investment is preferable, the investor may want to focus on properties that have a stable income stream, such as a long-term lease with a creditworthy tenant. But, if the investor is willing to assume more risk, they may consider properties that require more management, such as a value-add property, which may need improvements to increase its value.
4. Consider experience and skills: The investor’s experience and skills can play a role in selecting the right commercial real estate investment property. If there’s prior experience with managing properties, the investor may feel comfortable taking on a value-add property that requires more time and energy. If the investor is new to commercial real estate investing, they may want to focus on properties that don’t require a huge amount of time or resources. They may even consider appointing an experienced CRE professional to help with property management. 
5. Evaluate the market: Market conditions also play a part when selecting a commercial real estate investment property. It’s important for investors to make a genuine assessment of the market or work with a professional who can do the legwork for them. The investor should be looking for markets that are growing and/or have a stable economy. This increases the likelihood of property value appreciation and tenant demand.