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REAL ESTATE INVESTING
Looking For a Good Deal?

As Commercial Real Estate Brokers, investors often ask us; “Do you have any good deals?” I sometimes feel that I’m supposed to answer with, “Yes, there is; among all the available properties on the market this one, special, undiscovered, diamond in the rough that is an unbelievable ‘good deal.”

Let me state before I go on that yes, there are a lot of ‘good deals’ on the market. The rub come in determining what is a good deal for an individual investor. What’s good for one might be totally inappropriate for another. Let’s look at some questions for consideration.

Cash Flow – Are you looking for an existing positive cash flow from and established building? If so leased properties might make the most sense.

Appreciation- Are you less concerned w/ cash flow but you want the property value to increase at an accelerated rate. If so the old expression of getting in the way of the bulldozer might apply. A property on the outskirts of current development might work.

Liquidity- You must ask yourself, "Do you need the option to sell quickly if an emergency arrives or can you hang on for the long run"? Unique properties might hold the most potential but might take some time to capitalize on them or sell quickly.

Time- Are you looking to invest money but not time? An occupied condo might work. Or are you willing to add time and value to a project in seeking higher returns? Perhaps land development or rehabs?

Risk vs. Yield – As in other investments a steady certainty will most likely yield less than a volatile unknown.

Use- Do you intend to use the property? If so perhaps non-financial issues come into play. Ascetics or image, location as to proximity to transportation or your clients, cost of acquisition as well as cost to operate.

Looking for the best deal in real estate? We at Magnusson Balfour would like to help find the best deal for you!

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