Investing in any property (hoping to make a profit) takes good timing, research and knowledge of the area – these factors combined go along way in helping you make an “educated decision” and hopefully avoid money pit mistakes. The challenge is you still are relying on your own know-how and resources. This can only take you so far, that is why many in the industry lean on the property managers to help them reveal genuine investment opportunities.
As we’ve mentioned before in other posts, not all property managers are equal and very few have the 30+ years of experience and expertise in the areas of importance to give you sound advice like those at Western Management Associates – choosing the right team is just as critical as the choosing the right property itself!
Here are just a few reasons why should consider using a property management team when investing in commercial properties:
- Get inside knowledge – Unlike residential properties where square footage isn’t a factor, when it comes to commercial properties everything is tied back to usable square footage. Also cash flow tends to be higher in commercial properties because leases are normally longer than residential homes. It’s also a good idea to save up some cash as more down (around 30%) could be required by banks depending the credit environment.
- Recognizing a good deal – If you are from the area you plan on investing that will help, if not it’s imperative that you seek out assistance in gathering local real estate demographics including: businesses, crime, schools, job market, vacancies, etc. A local property management team will already have this information including further details on trends and expectations. Another key factor is having a “good pair of eyes” to assist you when you looking at a potential property to spot possible down the road issues or repairs that most likely will come up.
- Learn, Evaluate and Close - The experienced team of professionals at Western Property Management can also help you learn key industry terminology and metrics like: NOI/Cap Rate/Cash on Cash. Conduct open houses and property evaluations to help you find potential and motivated buyers. In the end people buy from people and finding a good company that has all the wealth of experience along with a history of building relationships will be invaluable to you.