Commercial real estate investment property, Are you ready to move into this market? A prime commercial real estate investment site was listed by a local agent in my area recently. It was a Salvation Army hall with a three bedroom brick house detached from the hall. The site was nearly of an acre right in the middle of the Central Business District of a regional town that is growing rapidly despite the slight down turn in the local economy. The agent listing the property had printed up a glossy brochure with an aerial photograph of the CBD showing all the prominent buildings including McDonalds, all the major banks and supermarkets, Post Offices and government buildings. The pitch of the advertorial was the close proximity to all these major players. The first think I started to thing about was the price the real estate investment property would bring. It was fronting the highway on a corner block. Also the agent had done a great job with the advertising of the site. I found out that a lot of the local developers were interested. So immediately I knew the owners would be firm on there asking price. For me to buy this investment property, I would need a Joint Venture partner. I had been talking to a customer of mine who was keen on getting into some commercial property. Pete organized with a friend to do some figures on developing the site. This would give us an overall costing for the purchase price, the developing, consultants and closing costs. The great thing about this deal was it had a long settlement. I would be keen to try and delay the settlement even longer. I would be happy to resell this real estate investment deal undeveloped if some one offered me a good price. I would have to put up 10% deposit to hold the property for up to nine months. Capital growth and high demand on developing the CBD area of town would ensure me of a nice return. Real estate investment deals like this one are about. If you are prepared to take on the risks associated with them you will create wealth while you sleep. That is what excites me some much about real estate property investing. To your investing success. Leo Love PS If any of your family or friends is interested please pass this on to them. |
