Welcome 2020! As we celebrate this new decade, the 20’s may bring to mind words like roaring, glamorous, exuberance and yes, crashes! When entering into real estate investing It is important to stay grounded both in good markets such as the one we are currently experiencing, as well as more difficult ones. Regardless of market conditions, it is important to remember the “Other” Golden Rule: Do not fall in love.
We aren’t saying not to fall in love with with your family, your family, pets, friends, hobbies, and all the things you are passionate about. That’s what makes life sweet. But do not fall in love with your investments.
Commercial Real Estate strictly provides a tool to achieve financial goals. It’s a reflection of your financial goals, not your personal preferences. It shouldn’t be based on aesthetics, your personal style, and more emotion driven details. The best investment properties are seen through the lense of careful analysis. Careful analysis includes understanding the quality of the tenant(s), lease terms, vacancy, location, property management, loan requirements, exit strategies, CAP rates, and so forth.
Just remember, you may love your investment today but conditions may change. Keep a careful eye on the performance of your properties. Sooner or later it will be time to let them go.
Coldwell Bankers Commercial, Agents are available to help you navigate commercial real estate investing within Billings, MT.
