Investing in commercial real estate deals offers some significant benefits over the residential type but it is not quite as simple. Here are some basics to help you make smarter investments in your commercial real estate dealings:
- Understand the Metrics b It is essential to understand such concepts as b net operating income,b b cap rateb and b cash on cash returnb before entering into commercial real estate deals. It is the only way to properly value a property.
- Have A Plan b With the above metrics in mind, you should be able to determine your maximum purchase price, your operating parameters and how your exit strategy will work b all important aspects of your overall plan.
- Motivated Sellers b One of the most powerful ways to ensure a good deal is to find a distressed or b motivatedb seller. While hard to find, they almost always offer the best chance for a lucrative deal.
For more info on the South Florida commercial real estate market in general, or if you need some help finding the perfect office space in particular,B please contact the real estate pros at Morris Southeast. You can find us online at morrissoutheastgroup.dsherpa.com or reach us by phone at 866-930-1426.
Tags: commercial real estate, commercial real estate in south florida, Commercial Real Estate Trends, South Florida commercial real estate services
