In the current market, all commercial properties are on sale, because either cap rates have increased and/or vacancies have increased. Increasing cap rates example: Assume Net Operating Income is $120,000 per year and cap rates have increased from 6% to 8% At 6% your purchase price would have been $2,000,000. At 8% your purchase price […]
Why Now is a Good Time To Buy Commercial Properties Read More »
We’ve all done it; we all make mistakes in real estate investing. The 5 mistakes that I see commonly made in commercial real estate investing are poor due diligence, insufficient market knowledge, not running your property like a business, not having an exit strategy and having too much debt. Performing poor due diligence. Not paying
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A highly popular type of commercial property investment is the NNN leased property. This is typically a retail property leased to a single tenant with a high credit rating using a triple net lease (NNN lease) which means that the tenant is responsible for paying real estate taxes, insurance and maintenance costs. Examples of commonly
Triple Net Properties: A Great Investment Read More »
Investing in commercial real estate can be extremely lucrative and rewarding. And in the current economic conditions, it can provide more security than investing in the stock market. The stock market is currently on shaky ground, surviving in large part due to government bailouts. Continuing market corrections are inevitable. At the same time, most companies
Investing in Commercial Real Estate Read More »