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The Top Reasons to Purchase Commercial Real Estate Income Property and What to Look-Out For

May 17, 2015

Buying Commercial Income Property

Here Are Our Top Reasons For Buying Real Estate Income Property

  1. Steady Income from stable businesses.
  2. Increased rents over time.
  3. Future appreciation if location and building are researched properly.
  4. Depreciation and write offs against the income collected.
  5. Possible 1031 trade to delay a capital gains tax based on a possible gain.
  6. The building if selected wisely may be used for a variety of uses that will assure future income.
  7. When purchasing a location make sure either the area is very stable or has a high degree of potential growth coming in its direction.
  8. Make sure your tenants are not overpaying for the current rent inflating your purchase price from day one.
  9. Watch out for paying too high of a price per square foot for the replacement cost of the building.
  10. Make sure your tenants are financially sound and their business is not in danger of going out of business.
  11. Watch out for possible future road changes and ingress and egress changes.

 

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Westwood Net Lease Advisors has made every attempt to ensure the accuracy and reliability of the information provided. Westwood Net Lease Advisors does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained herein. We are not lawyers, accountants (CPAs), or certified financial planners, nor is the information herein considered legally-binding legal advice, tax guidance, or financial counsel.