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Direct: 712-388-2230
Office: 712-325-0445
Heartland Properties
535 West Broadway, Suite 100
Council Bluffs, IA
712-325-0445
Remember this…
A few simple rules to follow making 2010 a safe and profitable year in Real Estate.
I have four leasing opportunities for small office or retail business’. Space is available in Council Bluffs on Broadway or near the Mall of the Bluffs in Woodbury Hills (just off Interstate 80). Square footages range from 810 to 2,100 square feet. Call or e-mail me for details!
We all wish we had a crystal ball to predict the future. Alas we don’t … we need to rely on our experience and market savvy to make good buying and selling decisions. Many Real Estate experts anticipate a tough year in 2010. They may be right, but in these challenging times there will be opportunities.
2010 will continue to see tough credit and cash requirements from commercial lenders. This does not mean financing is not available, only that the lending institutions are going to expect to be in a safer position with lower loan to value ratios and a more critical look at the borrower’s credit and the property’s value and income potential.
Kenneth O. Riggs Jr. CCIM, CRE, MAI wrote a great article in the January/February 2010 issue of Commercial Investment Real Estate Magazine. This article is an honest and critical analysis of the issues investors will face in 2010 and where opportunity might lie. The full text can be read at …. http://www.ciremagazine.com/article.php?article_id=1477
Mr. Riggs said “Commercial real estate continues to suffer on two fronts: space demand… and upside-down credit…” These issues plagued 2009 and will continue until consumer confidence returns and production demand results in American business growth.
He also said “…investors will hunker down; face gut-wrenching issues, and make difficult decisions. But 2010 also may be a good year for investors to purchase quality properties at reduced prices.”
Real Estate investing in 2010 will not be for the faint of heart, and cash will be king! This means however excellent opportunities may present themselves at any time and you need to be ready.
I have one client that through 2009 said “I’m keeping my powder dry” meaning conserving their cash so they would be in a good position to capitalize on these opportunities when the present themselves.
A wise person once said there are three factors to consider when buying Real Estate… they are Location, Location and Location. This is an over simplification but fundamentally true. If a property is in a bad location, no matter what price you pay it will still be a bad location.
But consider this… a building that is a bad location for a restaurant might be a great location for an office space. Understanding your market area is essential. Know where the traffic is and how the access to the property works. Understand zoning and planning. Understand the growth of your community and the demographics.
All these factors go into a good location decision.
Beginning investing needs to start with education and goal setting.
Understanding the relationship between risk and return is also an important element.
Planning you personal budget to make sure your living requirements are met and the amount of money you are setting aside for investing is not going to put your budget and credit at risk.
Then meet with an experienced Broker that understands short and long term investing and has the investors best interest as a primary focus.
Investing in Commercial Real Estate can be a profitable endover even in this slow economy.
Today I want to make three points.
The result is a purchase that will result in a higher return without significantly higher risk.
I have two high traffic retail locations available from 810 square feet to 1,690 square feet. One space is NEW! he other is fully finished as an office space. 40,000 cars a day see this site.
Remember that even during the Great Depression fortunes were made. Careful evaluation of the opportunities you are presented can reveal either great risk or great potential. Consider all factors that could affect the investment. Be realistic with your expectations. Account for the risk factors to diminish their impact. Verify claims made by a seller. A little extra due diligence can make all the difference between a stressful and costly poor investment and a pleasantly profitable one.
In adversity there is opportunity. Companies and investors that are in sound financial condition are in a good position to make Real Estate purchases or leases at prices and lease rates much below the values seen in the past few years. This creates opportunities to plan and acquire business property that will allow much more affordable expansion and profitability when production and sales rebound.
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