California has one of the strongest and most expensive real estate markets in the country. When it comes to commercial real estate, the opportunity to provide office spaces for tech companies and household names could help even small investors grow to millionaire status with time, dedication and the right opportunities.
According to Forbes, the first step to becoming a millionaire via this route is to focus on long-term holding of properties. Investors should also continue to build and diversify their portfolios and renter clientele. Rather than spend all the income generated from each property to live a more lavish lifestyle, consider keeping personal expenses low and reinvesting that into more and more properties.
Commercial real estate brokers also make good money, commanding incomes around the quarter-million-dollar range annually. The most successful brokers bring in seven-figure salaries. In spite of this, it is important to note that brokers get paid 100% off commission. This is not the best choice for someone who needs a nine-to-five check and cannot accept a certain level of monthly risk.
Some people may choose to develop commercial real estate properties. This is one of the riskiest options and is perhaps best reserved for people who are comfortable with risk and who can afford to take them on. Developers take on the most debt, are most sensitive to changes in the economy and must continue to cultivate relationships to raise funds.
According to U.S. News, when entrepreneurs decide to focus on commercial real estate, they need to prepare to tackle a few obstacles. These include financial evaluations, legal structures, liability and loans, property management and tax implications. Rather than attempt to tackle all of these tasks on their own, proactive entrepreneurs rely on professionals. After all, the last thing they want is to make that first million and lose it in a civil suit or to the IRS.