Without a doubt, everyone is sick of the word uncertainty, but like it or not, it is the reality of the times. The boom years in our business meant that real estate investors often had only the next sale price in mind when they bought a property. Real estate prices will always rise was the thinking.
Of course that old adage proved to be false in the housing market, but it doesn’t mean investors should be scared of commercial investments. Commercial properties with real cash flow or monthly income should prove to be a sound place to invest, and in the long run, return on investment should prove
Says Joel Ross of GlobeSt.com, “projecting huge value jumps over 4 or 5 years is hard to do since there is so much we cannot predict, so current cash flow is probably what is most reasonable to be looking to. Solid office assets (and) multifamily in many markets are all assets worth acquiring.”
Or take a look at a Yahoo! Finance article from this summer called “5 New Rules of Real Estate”
4. Investing? Focus on Income
Somewhere along the way, ordinary civilians got the idea that there were massive profits to be made in real estate, if only they could flip the properties fast enough. The problem with that strategy became apparent when the real estate market crashed, and investors (who were leveraged to the hilt) couldn’t get out of their properties in time. When you’re paying thousands of dollars for a mortgage but don’t have any income — nor hopes of a sale — it’s a fast track to bankruptcy.
But now is an amazing time to buy investment property. Purchase a foreclosure or two (or up to 10, if you can find the financing), and focus on how much income you can get each month. If you buy a foreclosure in the Atlanta area for $75,000 and can get $800 to $1,000 per month in rent, that’s a terrific return on investment.
Grisanti Group of course focuses on commercial real estate, not foreclosed homes. But we can help you find office assets, self-storage, and turn-key business opportunities which can bring you real cash flow every month. Check out our featured properties, or contact us to learn more about our vast and varied listings.