There are a lot of things that people don’t properly understand when it comes to commercial real estate (CRE) as a market. Larry Polhill, the previous director of APFC, has decided that it is time to change this. He wants to provide the information that the Securities Exchange Commission (SEC) often does not provide investors with. Essentially, however, as president of his own company, he wants to address the myths that surround CRE.

Larry Polhill’s Myth #1 – Only Those with Money Can Invest in CRE

This is perhaps the greatest misconception around. While it is certainly true that having a bit of money will help you, you don’t need to have half a million dollars in your account to invest in your first property. Banks aren’t all that interested in what your balance is. Rather, they want to see how likely it is that you will profit from your idea. The better you present your idea, therefore, the more likely it is that they will fund you. And there are always private money lenders to consider as well.

Larry Polhill’s Myth #2 – The Accounting Is Very Complex

While it is certainly true that there is some math involved in CRE investments, there are lots of software solutions to do this for you. All you need to know is the simple figures, such as asking price and how much money you have. The rest is all down to being able to understand what the figures mean.

Larry Polhill’s Myth #3 – CRE Properties Are Advertised in Lots of Places

Perhaps the greatest difference between commercial and residential properties, is where they are advertised. There are some good websites for CRE, such as Loopnet, but the reality is that it is much more difficult to find these types of properties than regular homes. In fact, some say that the best way to find them is by simply driving around and spotting for sale signs.

Larry Polhill’s Myth #4 – Managing CRE Is Very Complex

It is certainly true that property management is complicated. However, it is no more complicated than managing a residential property. Plus, you can hire professionals to do this for you, who will also be responsible for the truly complicated issues, such as dealing with late payments.

Larry Polhill’s Myth #5 – It Is Really Hard to Find a Good Deal

Of course, this all depends on what someone would class as a “good deal”. However, there are lots of properties that would be classified as a good deal, such as properties that are below market value but still in good condition. You just need to be able to find them.

Larry Polhill’s Myth #6 – Your Agent Doesn’t Matter

Your agent is your greatest allay in negotiations. There are different types of agents to work with, some of whom will work on your behalf, as the purchaser and prospective landlord, but others work on behalf of prospective tenants. It is important, therefore, that you check the one you want to work with has your best interests at heart.