When buying commercial real estate, there are some things to consider. First off, you should consider the size of the building in question. How many different businesses could rent out the place? If you invest in commercial real estate as a form of income, you should look for commercial real estate listings that can house several different businesses. After all, the more businesses you have renting from you, the more money you make.
The basic elements of an investment are cash inflows, outflows, timing of cash flows, and risk. Your ability to analyze these elements is actually key in providing services to investors in commercial real estate. According to Real Capital Analytics, more than $160 billion of commercial properties in America are now in default, foreclosure, or bankruptcy.
Ultimately, before you invest in real estate, you should make sure you only invest in something that will make money. Therefore, your best bet is to look at commercial real estate values and look for something of high value.
