Investing in commercial real estate, as with any other investment, comes with potential risks. Different investors have degrees of comfort with risk. It is essential for first-time CRE investors to understand their level of risk tolerance and avoid mistakes that can derail even the best investment strategy. Let’s take a closer look at the mistakes…
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Both commercial real estate buyers and sellers should have a trusted, experienced, and knowledgeable commercial real estate agent working with them throughout the process. There are several factors to consider when choosing a commercial real estate agent and taking the time to find the best professional can save you significantly as a buyer and increase…
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So you’re entering into negotiations to buy, sell, or lease a property, and you want to get the best deal that you can, while at the same time, you want to set the proper tone for negotiations. Because ideally, you’ll want the person on the other side of the negotiations to perceive you as being…
Read MoreThese recent years have been good to commercial real estate. Things have improved considerably in so many geographical areas since The Great Recession, but what does the future now hold for us? We know that the economy and the real estate markets will come and go in cycles, so what does our crystal ball now…
Read MoreOver recent decades, getting a Phase 1 environmental report completed has become the norm when buying and selling commercial property. Buyers and lenders simply need to know if a property may have any contamination that needs to be remediated, as the price of doing the remediation can become substantial. In addition, if you’re a property…
Read MoreIn the early 1980s, we experienced the prime interest rate being above 20%. We were in an economic recession here in the U.S. back then, and people weren’t too excited in knowing that if they purchased commercial real estate, they’d be asked to pay more than 20% in annual interest on their loans. But in…
Read MoreThe economy has been chugging along fairly nicely in most areas for several years now. But this then always begs us to ask the question, “When will we experience the next economic downturn?” This isn’t a question that we often like to ponder, but at the same time, we’d always like to anticipate what’s coming…
Read MoreComparing total cost of asset acquisition to the income after all expenses lets you determine the before income tax return on investment.
Read MoreWhen you know the total cost of acquiring an asset, then you can compare that cost to income after all expenses have been tabulated.
Read MoreAfter adding acquisition costs to the property purchase price, deduct the loan amount to see how much cash you need to close.
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