The highest quality in commercial real estate. If you are interested in taking advantage of this by investing in a hotel, you have the choice of buying an already functioning hotel or a piece of real estate that has the required space and infrastructure to start a new one. As you will see, now is NOT a good time to consider investing in commercial real estate UNLESS you will be running a business from the property.
As a rule general rule to purchase income generating apartment buildings and mixed use multifamily properties one should be prepared to spend 25% to 35% of the purchase price for the down payment. You should avoid compromising the operations of your business just because you use the money in purchasing a commercial property that is intended for the operations.
Before his service at the University of Michigan, he was the treasurer and chief investment officer for the Metropolitan Museum of Art in New York City, and served as vice president and general counsel for Princeton University Investment Company. You also want to make sure the insurance policy also covers rental income loss for 12-24 months in case the property is damaged by fire or natural disasters.
Conservative market rent: the operator wants to make sure he pays a low rent so his restaurant business has a good chance of being profitable. Comparable properties exist in any market place at any time. Know the major property owners and businesses in the area and the relative decision makers for each.
I want to be the instrumental resource in your commercial real estate experience. Commercial property is transacted to a cycle of investment and history shows that it is about every 5 years. If the commercial real estate you are considering is in great shape, you won’t want to look at comps that are on run down properties.