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Commercial Real Estate Investment News

What a Valuable Investment Property Looks Like

by | Jan 23, 2020 | Investment

When you secure commercial loans for real estate, you have the opportunity to put that money into a potentially profitable asset. But how can you be sure you’re investing in a valuable property?

When considering a new investment, you should take some time to consider a variety of factors. The worst mistake an investor can make is jumping into a hot property without researching it thoroughly.

Here are some of the important things to look for before obtaining investment property loans.

NYC birdseye shot
  1. Location

In order for your real estate investment to be profitable for you, it has to be profitable for your tenants, too. You don’t want to invest in a commercial property in an underdeveloped location.

Think about what your tenants would want to be close to, such as restaurants, shopping areas and schools. These help make the property more attractive.

  1. Property Taxes

When financing commercial real estate, consider the amount of property tax you’ll have to pay. These taxes can vary depending on location, so you’ll have to do your research.

There are some scenarios where higher property taxes may be better for your long-term investment strategy, so crunch the numbers to see if the property is a good deal or a bad deal.

  1. Amenities and Perks

Sometimes little perks can be a big selling point for potential tenants. Consider the different amenities of a property before getting commercial loans for real estate.

If the property is attractive, for example, or if the property is on a bus route, tenants could find themselves more interested in the location. A property standing out in one way or another is valuable when it comes to securing and keeping tenants.

  1. Future Development

You don’t have to invest in a developed commercial real estate property right away. Find out what the plans are for developing the land around the property.

If there are imminent plans for commercial buildings, shopping centers, and housing communities, the value of your investment could soon rise. There are few factors that could hurt your investment when it comes to future development, but be sure to consider those as well before taking out investment property loans.

When you believe you’ve found the perfect property, Commercial Mortgage Connection is here to help with commercial loans for real estate. Be sure to contact us to learn about the advantages of working with us on your next investment.