Define Investment Goals:
- Objectives: Income generation, long term appreciation, or a value add (remodel and fill vacant space) flip.
- What level of risk are you willing to take?
Utilize Market Experts:
- Utilize people who understand the regional real estate market trends, understand risk, and have strong connections across the market.
- Do inspections and identify deferred maintenance.
Explore Financing Options:
- Explore various financing options, including traditional mortgages, commercial loans, and seller financing.
- Understand the terms and conditions of financing, including interest rates, loan-to-value ratios, and debt service coverage ratio.
Evaluate Tenant Quality:
- The quality of tenants can significantly impact your investment. Evaluate the creditworthiness and stability of existing tenants.
- Consider the lease terms, expiration dates, and renewal options.
- Is it easy to re-tenant? Are the spaces plug and play or will they require expensive build out.
Implement a Solid Property Management Plan:
- Whether you handle property management in-house or hire a professional management company.
- Regularly inspect and maintain the property to address any issue.
- Maintain strong tenant relationships.
