Your questions about commercial real estate

Wize Guy answers:

Go with a brokerage that specialises in CRE such as C.B. Richrad Ellis…..funny thing about CRE is that mist inventory is rarely advertised in traditional medium but a specilaized CRE agent will know who is selling and will help you determine if the price is too high. There are certain things to look out for when analysing income-producing proeprty that are unique to CRE: 1) Strength of net cash flow 2) Cap rates 3) NPV (net present value) 4) Character of bldg. A good CRE agent will know about these factors.

Wize Guy answers:

It really doesn’t matter what kind of company you are going to get your first job as long as you performed well get sells then you are going to be recognized.

Wize Guy answers:

Hi here’s my opinion on where commercial real estate will be booming.

1. Austin,Houston,Dallas, Texas
2. Jacksonville,Panama City,Florida
3. Las Vegas,Nevada
You need to be near major cities like these that I feel haven’t peaked yet, especially in texas and florida. I would steer clear of California, too over priced.
If I were you I’d also consider investment banking in NYcity, some of these guys make $250,000 just in bonuses. Best of luck man.

Wize Guy answers:

-Facebook
-Twitter
-Blogs
-Web Site (you will need to generate traffic)
-Cross marketing (this is the best)
-YouTube (this will get the most hits)

Visit my site. If I can help, give me a call. THANKS! http://www.sacramentomarketingcompany.com

Wize Guy answers:

I agree with the previous answer. You might also need a lawyer, particularly if you are investing with others and forming a partnership.

But to answer your question, some initial things to look at are 1) Income stream relative to your up front investment. You should be given a sufficient rate of return on your investment for the risk you are undertaking. Office properties are struggling in many markets so they are seen as riskier investments and therefore should require a higher return. 2) The quality of the tenant(s). Who are the tenants occupying the building. Are they financially strong? Do they have good credit? Also, how long are the lease terms and are increases built in. Are there any unfavorable terms such as early termination options for the tenants. You don’t want to be dealing with a lot of turnover and vacancy. That can be costly. 3) Local market. Check out market reports from brokerage firms like Grubb & Ellis or Cushman & Wakefield. What is the vacancy rate and asking rental rate for your particular submarket. Are the asking rental rates in the building you are looking at higher than the asking rents in the market. If so, you may have trouble keeping that tenant or finding new tenants at that same rate when their lease expires. Avoid paying premium prices for properties that have higher rents if those rents are not sustainable. Those leases could have been signed at the height of the market and the tenant could be struggling to pay it. 4) Management – Who will manage the property. Are they qualified? Can they handle tenant improvements, vacancies and reimbursement collections.

This is really just the tip of the iceberg. There’s so much more to consider when buying a commercial property. I actually think it’s a great time to get into commercial RE. I would just do your homework and talk with some professionals.

I wrote an article on analyzing investment property. The focus is on apartment rentals, but much of it is relevant to all income property types. Hope it helps. http://hubpages.com/hub/InvestmentPropertyAnalysis

I should add, I remember a good book I read that is perfect for novices. I think it’s called the Real Estate Game, and the author was Poorvu (sp?). That might be a good resource for you.