Compared to other slow-growing investments, CRE can give you mega returns, but only with the right foundation in place—a good space & responsible tenants & landlords. Every structure operating as a business is a potential investment & the opportunities are endless: gas stations; churches, bowling alleys, medical offices, farmland; old airplane hangars; and even trailer parks.
Food for thought before you see $$$:
· Get to know everything about the businesses that will move into the property you’re considering investing in (apartments, office buildings)
· Have the property professionally inspected with details on past, current & future sustainability facts & figures.
· Obtain industry-specific knowledge on the property you’re interested in.
· Minimize risk, scrutinize the property details, the people & the deal.
· Don’t be in a rush. Long timeframes give you time to assess & evaluate.
A good CRE advisor sees the red flags before you do:
· A fixer-upper property that can’t really be fixed & priced very low. I know the bad properties.
· Pre-payment penalties in the property’s contract
· Ambiguous valuation & contracts
2 must-haves–a detailed paper trail & an experienced CRE advisor. Happy to help.