Some of the best real esate investments are not on the internet or in the WSJ. These may be known by or identified by real estate investment brokers in given markets. Contacting investment real estate specialists is one way to find these investment opportunities. Investment brokers maintain these broker contacts through industry organizations, meetings and acquaintances made over years. This can me a valuable source for finding some of the better investments in commercial real estate. Find an investment broker you like and can trust. You may find more than just a business partner and friend.
A client presented us with an interesting investment assignement this week. Here is the assignment without names or locations -- Please contract for and buy the two subject office investment properties at a price that will cash flow day one with 20% cash in (80% leverage), based on the existing Net Operating Income (NOI). What would you say...good approach to investing or not?
Your investment or exchange target properties are unique. Investors look in different locations, price ranges, cities, states or areas, for location and site characteristics, tenant types and number and income and price ratios - as well as many other specific property criteria. But the game is just beginning when the best target proeprty is identified. Tying up the property and negotiating an acceptable contract is next. Then comes the analysis and inspection...and finally the close of escrow. One of the keys in today's investment market is to move carefully but quickly. A little knowledge can be a dangerous thing. Have the most knowledge and experience you can get on you side of the table. And - by the way....Friday afternoons are a very important time in investment real estate transactions. Buy right for the hold period -- for investing fun....and profit.
Some great locations are coming out of the ground for 15-year lease Advance Auto properties. For example, a new Advance located on a front-and-center Outparcel at a Wal-Mart SuperCenter just came on the market in Tennessee. The 7.0 CAP price for this 15 year base term income steam with three 5-year lease renewal options is just an example of some of the new 15 year lease investments coming available for investors. Some of the new locations seem to provide good upside for the site over the hold period. This type property sells well.
The National Real Estate Index tracks changes in price per square foot for investment classes. Latest figures are year over year through 4th Quarter 2005. Apartments up 12.8%; Offices up 11.8%; Retail up 11.6%; Warehouse up 8.6%. For a more detailed list go to realestateindex.com.
The five (5) most important aspects to the next real estate invesment you make, in order of importance, are:
1. Buy it at the right price;
2. Credit worthy tenant;
3. Location that will increase in value;
4. Tax friendly state;
5. Location with multiple future potential uses. --
You have your own five (5) most important things you want in your real estate investment properties. What are your five most important? We really do want to know what yours are!