Unlike the stock market, bonds, or even that shoebox full of collected coins, real Estate investments offer a unique cash flow. An Investment property can be defined as “real estate property that has been purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both” (Investopedia).
First, it may be beneficial to determine why you would like to pursue investments through Real Estate. Are you looking for a quick return or are you open to seeing a return in the future? Make sure to have your goals clearly outlined; miscalculating and poor planning are two of the largest mistakes to be made when investing.
Beginning in rental properties may be the perfect introduction to begin building your investment portfolio. If you are leaning more towards investing in commercial real estate, it is imperative that you determine if you would like to focus on retail buildings, offices, industrial spaces, or mixed use buildings.
When meeting with clients who are interested in Investment Properties, I like to learn about my client’s likes, goals, and how involved they wish to be in the long-term when owning investment properties.
Investment properties present a unique approach to diversify one’s portfolio. As an example, 404 Chatham Square Office Park in Fredericksburg, Virginia is a great net-leased asset to be utilized as an investment property. Situated in an active office park, this current medical office is fully occupied with a five-year lease in place. A projection of $40,000 of gross income may be acquired from this property. The 2,025 square foot space is priced at $569,000, which is a 7.5% CAP.
Many of my clients find success in investment properties and are now living off of the residual income due to such investments. I would love to schedule showings with you for 404 Chatham and other properties in the area and to speak further about investing in real estate.
sources:
Simple Ways to Invest in Real Estate
10 Lethal Real Estate Investing Mistakes
Pros and Cons of Investing in Commercial Real Estate
How to Invest in Real Estate
