What Kind Of Contractors Do You Need To Build Commercial Real Estate

When it comes to building commercial real estate, you’re embarking on a complex journey that involves many moving parts. To ensure the success of your project, it’s crucial to assemble the right team of contractors. Knowing which specialists you need for the job can save you time, money, and countless headaches. Here are the essential types of contractors you must have on your side to bring your commercial real estate project to life.

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General Contractors

Your project’s point person, the general contractor, is the quarterback of your team. They coordinate all aspects of construction, especially for commercial construction projects as they manage subcontractors, and keep the project on schedule. A skilled general contractor is essential for ensuring that your project stays within budget and runs smoothly from start to finish.

Architects and Designers

The design and aesthetic appeal of your commercial property are key to attracting tenants or customers. Architects and designers are responsible for the layout, functionality, and aesthetics of your building. They work closely with you to ensure that your vision for the property aligns with both practicality and market trends.

Conceptualization and Planning

Architects and designers are responsible for translating your ideas and objectives into tangible designs. They create a concept that aligns with your vision, keeping in mind both the practicality of the space and the current market trends. This initial phase involves numerous discussions and iterations to ensure that the proposed design not only reflects your vision but also meets the needs of potential tenants or customers. They consider the flow of the space, optimal space utilization, and the incorporation of key features that will enhance the property’s appeal.

Regulatory Compliance

Beyond aesthetics, architects, and designers are well-versed in local building codes and regulations. They navigate the permitting process, ensuring that your project is in compliance with all legal requirements. This expertise prevents potential delays and costly modifications during construction, keeping your project on track and within budget.

Sustainability and Cost-Efficiency

Architects and designers have the knowledge to incorporate eco-friendly features and materials, ultimately reducing long-term operating costs and environmental impact. Their choices can also enhance energy efficiency and qualify your property for various certifications, attracting eco-conscious tenants or customers and increasing the value of your investment.

Structural Engineers

A solid foundation is the bedrock of any successful commercial real estate project. Structural engineers ensure that your building is safe, stable, and capable of withstanding environmental and load requirements. Without their expertise, you risk structural issues and costly delays down the road.

Designing a Safe and Resilient Structure

One of the primary responsibilities of structural engineers is to design the framework of your commercial property, ensuring it can withstand various stresses, including environmental factors such as wind, seismic activity, and snow loads. They also account for the weight of the building and the potential loads it will bear, like people, equipment, and furnishings. Their expertise guarantees that the structure is safe for occupants and complies with building codes and regulations. Without their input, your project might be at risk of structural failures that can lead to accidents, legal issues, and costly repairs.

Optimizing Material Efficiency

Structural engineers are well-versed in materials and construction techniques. They select the most suitable materials to maximize structural integrity while minimizing costs. This not only ensures the safety of the building but also contributes to cost-effectiveness. By efficiently using materials, structural engineers can help you stay within budget while delivering a robust and durable structure.

Electricians and Plumbers

The electrical systems in commercial buildings are complex, requiring a specialized skill set. Electricians install and maintain the wiring, lighting, and power systems to ensure a safe and functional environment. This is crucial for tenant satisfaction and the overall success of your property.

A well-functioning plumbing system is vital for any commercial property, from office buildings to retail spaces. Plumbers are responsible for installing and maintaining the water supply, drainage, and sewage systems. Neglecting the plumbing aspect can lead to costly leaks, disruptions, and unhappy tenants.

HVAC Specialists

Heating, ventilation, and air conditioning (HVAC) systems are integral to providing comfort within your commercial space. HVAC specialists design and install systems that regulate temperature and air quality, keeping occupants content. A well-maintained HVAC system also contributes to energy efficiency and cost savings.

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Building commercial real estate is a significant undertaking that demands a specialized team of contractors to ensure success. General contractors, architects, structural engineers, electricians, plumbers, and HVAC specialists are the critical players in your project. As you assemble your team, carefully consider the experience, reputation, and track record of each contractor to ensure they are the right fit for your unique project. With the right professionals by your side, your commercial real estate project will not only meet your expectations but also thrive in the competitive market. Remember, the success of your project depends on the expertise and collaboration of these key contractors.


What Real Estate Professionals Should Know About CE

Continuing education or CE can be an important part of growing your career as a real estate professional. The specifics of what you have to do or what’s going to be valuable in your career depend on the particular type of real estate professional you are and also where you live. For example, CA real estate continuing education requirements and options may be different than a state like Florida or Texas.

Sometimes, continuing education is required. Other times, it might be something you do optionally because you want to improve your skills and give your career a boost.

The following are some of the general things real estate professionals should know about continuing education.

Why Continuing Education in Real Estate?

Continuing education or CE is to keep you up-to-date, whether you’re an agent or a broker, on changes in regulations and laws. You can also refresh your general knowledge of real estate or expand it, particularly in certain niches like real estate investment.

When you initially get your real estate license, it’s a relatively quick process. You complete your pre-license course, take your exam, and you can launch your career in real estate. While this is a good thing in some ways, you also don’t learn everything you need to know as a real estate professional in your pre-license course.

When you do CE, not only do you stay up to date with the regulatory environment, but you can fill gaps in your current knowledge.

Every agent is going to have strengths but also areas of weakness, and continuing education is a good way to address those.

You can build particular skills, and if you’re already a working real estate agent, you’re going to have a better idea of where to focus your time when it comes to CE. You can boost your marketability when you learn new things, and if you’re ever in a career rut, continuing education can help pull you out of that and feel a renewed sense of inspiration.

The more knowledge you have, the more likely you are to have improved earning opportunities and career opportunities.

Maintaining Your License

Depending on your state, whether you’re an agent or broker, you may have to do some CE when you renew your license.

Going back to the example of California, in that state, if you’re a salesperson going up for your first renewal, you have to complete 45 clock hours of continuing education approved by the California Department of Real Estate. This includes four three-hour courses on different topics, two-hour coursework on implicit bias training, a minimum of 18 hours of courses on consumer protection, and then you also have to either do additional training on consumer protection or consumer service.

If you’re a broker in California, you have to complete 45 clock hours as well, broken down in a somewhat similar way for your first renewal.

For your second and subsequent renewals, you have to complete 45 hours of training that includes coverage of mandatory subjects like ethics and risk management, 18 hours of continuing education in consumer protection categories, and the rest can be spent on consumer service or consumer protection.

Mortgage License Renewal

Mortgage loan originators aren’t real estate agents, but they do work in the same industry, and under the SAFE Act they also have to follow continuing education requirements.

Under the SAFE Act, if you’re a licensed mortgage loan originator you have to take a minimum of eight hours of CE every year for the renewal of your mortgage license.

You have to complete your CE requirements before you can submit your paperwork to renew your license on the NMLS website.

Designations and Certifications

If you’re a member of the National Association of Realtors or NAR, there are available programs and services that you can use to improve your skills and knowledge. You can earn designations and certifications that show your expertise and experience in certain sectors of real estate.

These specialised credentials for Realtors are a form of education for real estate professionals requiring that you’re also an active member of NAR.

Examples of some of these NAR designations include an Accredited Buyer’s Representative, Accredited Land Consultant, a Certified Real Estate Brokerage Manager, a Certified Residential Specialist, and Graduate, Realtor Institute.

There are a lot of opportunities when you work in real estate to set yourself apart in an competitive environment through continuing education, in addition to the fact that sometimes it’s required for various licensing and regulatory reasons.

How to Invest in Real Estate for Passive Income: Explained

A lot of people conflate the idea of real estate investment with passive income real estate investing. Real estate can be a form of passive investing, though not in the way investors think. Real estate investing for passive income can be one of the most powerful ways to make money work for you.

Before we continue, let’s clarify what passive real estate investing is and explain how and why it’s different from active real estate investing.

A lot of people envision buying and renting out a piece of residential property. They consider this passive income because, as they imagine the investment playing out, they will collect checks every month from tenants. This is not what passive real estate investing is.

An investor in this scenario is supposed to choose the property to purchase. They will then work with a property management company to make regular decisions about such matters. The decisions may involve fixing or replacing a broken water heater or painting the property, which the management company will be in charge of.

If the investor decides not to outsource those operational tasks, they will have to manage such responsibilities themselves. That is referred to as “active real estate investing.” So, what is passive real estate investing? It’s a strategy through which you can create earnings without being actively involved.

“Passive income” is used loosely as the amount of activity required varies depending on the type of investment. Investing in real estate comes in many flavours, with varying degrees of commitment and investment. Real estate investing provides opportunities for both passive and active income.

Investing in Real Estate for Passive Income

Passive income real estate investing is one of the most common strategies for increasing your income. You can also use it to grow your investment portfolio and build a healthy retirement in terms of your financial life. If done right, this kind of investment won’t take a lot of time and energy.

Real estate is a great option that you can use to build passive income streams. Find out how you can invest in real estate for passive income below.

1. Real Estate Investment Groups

Real estate investment groups are ideal if you intend to own rental real estate without the hassle of managing it. Investing in REIGs requires you to have access to financing.

REIGs are like small mutual funds that are committed to investing in rental properties. In a typical real estate investment group, a company buys or builds a set of appointment blocks or condominiums. They then allow investors to buy the apartments through the company, thus joining the group.

An investor can own one or several units of self-contained living space. They, however, don’t manage the units as that’s the responsibility of the company operating the investment group collectively. The company handles the maintenance, advertises vacancies, and interviews tenants. As payment, the company takes a percentage of the monthly rent as payment.

A standard real estate investment group lease is usually in the investor’s name. All of the units pool a portion of the rent to guard against occasional vacancies. This is to guarantee that you’ll receive some income even if your unit is not occupied.

2. Short-Term Rentals

Short-term rental investments provide you with an opportunity to charge more on a nightly basis compared to long-term tenants. You don’t even need to spend time chasing down rent. Assuming you use a third party like Airbnb for your short-term rental investment, you’ll be able to earn money relatively passively.

Note that Airbnb isn’t the only option as they have competitors such as TripAdvisor rentals and Booking.com. Airbnb is, however, a clear leader. According to research from low-interest lender Earnest, an average Airbnb makes about $924 per month.

This income can, however, vary dramatically depending on where you’re based. It will also depend on how frequently you rent out your space, the quality of your home, and the services you offer.

A lot of full-time Airbnb rental estate investors began by using Airbnb as a part time side project. You can even rent out a room in your home instead of the entire apartment.

3. House Flipping

This investment is for people with significant experience in real estate valuation, renovation, and marketing. The investment requires capital and the ability to do or oversee repairs as needed.

This is the proverbial “wild side” of investing in the real estate sector. Just like day trading is different from buy-and-hold investors, real estate flippers are different from buy-and-rent landlords. A typical example is that real estate flippers always look to profitably sell the undervalued properties they have in less than six months.

Pure house flippers don’t invest in improving properties. Consequently, the investment must have the intrinsic value required to turn a profit with no alterations. Otherwise, the property will be eliminated from contention.

Flippers who can’t swiftly unload a property can easily find themselves in trouble. That’s because they typically don’t keep enough uncommitted cash on hand to pay the mortgage on a property over the long term. This can lead them to continue to snowball their losses.

There are other types of house flippers who make money by purchasing reasonably priced properties. They then add value to them through renovation. This can be a long-term investment where an investor only takes one or two properties at a time.

4. Real Estate Investment Trusts

REIT is a company that owns income-producing real estate. They pool investors’ money to gain and manage real estate properties.

Remember that REITs are high-end or commercial properties whose prices can fluctuate depending on the stock market. REIT allows you to have real estate investments in a completely passive manner because you essentially own a share of the fund. The rental payments pass through to REIT owners either on a monthly, quarterly, or annual basis.

REITs investors receive dividends in the same way you receive dividends from certain stocks. But the returns here are usually higher when compared to most of the other stocks.

The good news with REIT is that your money will stay liquid since you can sell it at any time. Also, the upfront costs for this real estate investment are relatively low and it is simple to purchase through a brokerage account.

5. Mortgage Notes

The other way of creating passive income through real estate investment is by purchasing a mortgage note. An investor can purchase performing and non-performing mortgage notes from other investors.

You can also create a note from a property you own using owner financing. Note that mortgages and notes are two separate contracts. They are used by lenders to provide buyers with the money to buy real estate.

A promissory note outlines the repayment of a debt and the mortgage secures the lender`s property as collateral. That’s just in case the buyer defaults. Some home buyers take out a home loans as a private notes rather than traditional loans.

Think of investing in notes as you taking the place of the bank. The buyers will pay you a monthly principal and interest. It will be the buyer’s duty to maintain the property, have insurance, and pay taxes. Your job is to collect a check every month and keep records of the payment.

Keep in mind that you can take ownership of the property in case the property owner fails to make payments. This type of passive real estate investing can be very complex. But it’s a better fit for investors who are familiar with mortgage notes.


Passive real estate investments are a great way of earning a steady stream of cash. You don’t even have to toil over renovating a property and neither do you have to worry about managing the real estate. That said, real estate investments aren’t for everyone. More active investments like flipping homes may appeal more to some investors than others.