Commercial Real Estate Insights To Make More Informed Investments
Gain financial tools and techniques required to assess the feasibility of a commercial real estate investment
The logic behind real estate investment decisions
PESONAL FINANCES AND INVESTING
Prudent investor’s four-step strategy
Step one – Evaluate your goals.
This includes your interests and desired level of involvement. You’ll need to consider whether you want to actively manage your properties or if you’d rather be hands-off. What type of properties will most likely bring the returns you seek? What kind of initial investment do you have available? Are you a sole investor or will you be part of an investment group?
Step two – Assess the market.
Simply buying investment property haphazardly all over town can lead to disaster and confusion. It’s much simpler to begin in one area and expand as your portfolio does. If you’re considering residential properties as rental units, start your research with the following area attributes: The migration of the residents, are they moving in or away from the area? How long do homes remain on the market compared to surrounding areas? What is the average annual market appreciation or depreciation?
Step three – You’ll need a team.
At very least your team should include a realtor and an attorney. As your portfolio grows, you may consider adding a tax advisor and an insurance agent. If you’re not the handy type you will definitely need a contractor on call to help you gauge repair costs and estimates.
Step four – Property selection.
If your goal is a residential property then you’ll want to target those attractive neighborhoods that will appeal to employed tenants. Lower tenant turnover means less property damage and lower cost to rent again. Choose homes without those special features that result in higher repair bills or greater insurance fees i.e. avoid swimming pools and working fireplaces.
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Consider the factors impacting the real estate INVESTMENT decision
Property values, in general, rise gradually over time. This means that even if the values in a community falter chances are that they will eventually recover.
Those who bank on the slow and steady growth in the value are referred to as buy and hold investors. These investors are truly committed to their investment. Some of them elect to hold the property as a vacation property while others opt to earn an income on the property by renting it out to other families or vacationers, whatever their choice may be.
Those who own rental properties must also be committed to making their investments work for them. Rental properties are not a ‘hands-off’ type of investment, as they will need to be maintained in order to remain in demand by tenants.
You must also make constant efforts to keep these properties managed and filled along with remaining certain that you are collecting your rent each month and that the properties aren’t falling into a state of disrepair or abuse by tenants.
Risks and Returns
real estate investment’s risk and return, and how an investor can use leverage to increase their returns.
This is a risky business and every property purchased doesn’t always pan out to become a successful investment. There are many risks involved in real estate investing and you would be going to battle unprepared if you didn’t take a moment to carefully study these risks and work to avoid them when planning your property investment strategy.
Unfortunately, there are very few one size fits all risks for real estate investing, as each type of investing is inherently different. This means that each type of real estate investment will involve a new set of risks.
BUILDING WEATH THROUGH REAL ESTATE
We live in a society where we learned to spend all the money we make. We make $5,000 a month, and we spend it all. We get a better paying job and start making $6,000 a month, and guess what, we spend $6,000 a month. The US Savings rate is at an all-time low, as more people are in debt than ever before.
Times are tough for most people in the US, and we know that our lives would be much better with an extra $2,000, $3,000 or more per month. Perfect RealEstate Investments cannot help you get a better job, but we can help you identify commercial real estate investments where you can put extra cash in your pocket and build wealth.
Consider the factors impacting the real estate investment decision
“I approach every investment project as if I am investing my money and not the investors’. If I will not put my hard-earned dollars in a particular investment, why would I advise somebody else to invest their dollars?”
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A bit more about US
Perfect RealEstate Investments, LLC is a full-service commercial real estate investment advisory firm. At its heart, commercial real estate investing isn’t about structures. It’s about people. We strive to go above and beyond for our clients, fostering a relationship built on trust, confidence, and honesty.