Real Estate Investing Or Purchasing Real Estate: Keep Realistic Expectations

Jun 25, 2015

Like everything else in life, being realistic when your thinking of your expectations when purchasing real estate is required.

Purchasing real estate or real estate investing in commercial real estate needs to be thought of as a steady, slow cash flow with long-term appreciation. Don’t expect instant gratification and think you will become Donald Trump overnight.


Here’s Our Exclusive List Presented As A Norm Used When Starting Your Real Estate Investing

  1. How much risk versus reward are you willing to take?
  2. Are you willing to borrow money in order to purchase higher priced commercial real estate?
  3. What is your target for cash on cash return for your equity invested?
  4. Is it mandatory that appreciation for future years is absolutely necessary?
  5. Are you satisfied with the same return or do you expect increases in your net income periodically?
  6. Be aware of the tax benefits of owning commercial real estate and when selling commercial real estate!
  7. Consult with a cpa or tax attorney when purchasing real estate. Have a trusted real estate professional broker guide you through the process. Give yourself a time line of how long you will tie up your equity for. Most pros will tell you that 10 years or more is the norm to hold an investment.
  8. Are you willing to do work yourself management, leasing or fix up of your real estate or just hand the job off to others while holding? Paying others decreases your net returns but may increase your time spent enjoying your family or outside activities.
    Pick a state or city that you think will appreciate each year due to an increase in population or business.
    Vary your assets groups when buying multiple properties.

Looking To Buy Commercial Property?

Find out why triple-net lease real estate investments should be part of your investment portfolio.