Commercial Investments
I like to consider my self a real estate broker that specializes in Commercial Real Estate. Over the years, I have been involved in all areas of real estate and finally decided years ago that to be a better professional, I needed to get real good in one area. So I specialized in Commercial Real Estate and even narrowed that down to real estate that generates income. That area of expertise includes leasing, sales and business opportunities. Any commercial or multi-family property that produces income and is held for investment will get my attention. In becoming a specialist, I completed all the CCIM courses and I am a candidate member of the CCIM institute, (Certified Commercial Investment Member), and regularly use all the CCIM resources in my analysis of properties.
It seems in my market area, probably one of the hardest things to accomplish is to find income properties that will make sense financially and actually make a return on the investment. I know that owners of commercial or multi-family real estate and real estate brokers have a real problem pricing income properties. Then when the property sits for months or years unsold, people wonder why they invested in real estate in the first place.
There is a fine line between market value which we all want to achieve and investment value which is the only way an income generating property will usually sell. I usually ask are you selling this building as housing or are you selling the ability to make cash flow, which is investment value. If you are purchasing a place to live that has a value, but if you are purchasing to generate income that has a value, as well, and the two are different.