Here are three important things you may not think of.
- Commercial real estate has long vacancies. Before investing, review the leases thoroughly and the companies backing them. If one fails to pay, it could be empty for a long time.
- Commercial real estate requires lots of cash. This asset class can give you fabulous returns, but you need the capital to stay in the game. Barely making cash flow positive is not good enough. You have to be able to save for those rainy days.
- Research the surrounding area. Look for other vacancies. Are there lots of them? What do the other buildings look like relative to yours? If you take some time to walk around the neighbourhood, you can get a real feel for the area and how your building fits in.
Good luck.
Hamilton Property Management Company - Del Franco Inc.