When you have a sizable amount of extra money sitting around, you may ponder what exactly to do with it.
Sure, you could invest some or much of it in stocks and bonds and your retirement portfolio.
You might also decide to help family or friends that are in a tight financial spot now.
If you have sizable credit card debt, you may try to pay it down.
Now, how about investing a good chunk of that money in commercial real estate? In being more specific, consider going after an office complex.
If not up to speed on commercial real estate investment, have a financial expert there. He or she can guide you on how to invest that money, what properties may be the most lucrative, and how to deal with issues.
So, is that office complex to have caught your eye a time or two worth your investment?
Knowing What You Are Investing In
If you proceed with plans to invest in an office complex, get as much info as possible on the following details:
- Complex – Unless you are planning on running your company alone at the site, you will have others move in. As such, you want to make sure that the complex itself is as up to date as possible. The last thing you want is one headache after another because the property has issues. Among headaches could be issues with water, electric, heating and cooling, and parking. Do an analysis of the office complex before agreeing to buy. You do not want to end up investing in a property that has a lot of holes to plug.
- Tenants – If you do end up with the property, do you know who you will rent to? It is one thing to take over a commercial rental property with one or more tenants already in it. In the event the property is new and now empty, you can have a little more say in who will rent from you. Either way, you want a tenant or tenants who will take care of the property. With you investing and taking sole ownership, you don’t want to pour many dollars in it once a tenant moves out.
- Growth – Last, is there room for growth in the neighborhood? If there is, are you thinking about investing more dollars sooner than later? Although that may very well not be a decision you have to make soon, keep an eye on what is going on in the neighborhood. You may very well not want to invest in a neighborhood that many real estate pros and others consider to be dying. You may be hesitant to invest in commercial real estate property where there is a lot of competition. With an idea of your goals and having a strategic plan in place, you will be better positioned to decide.
If investing in an office complex catches your attention, make sure you do your homework.