Posted by camgere on October 02, 2008 at 07:37:51:
I assume you are talking about apartment buildings and not muffler shops. You can always ask specific questions about the following articles:
http://www.creonline.com/articles/art-337.html
http://www.creonline.com/articles/art-337.html
http://www.creonline.com/articles/art-252.html
Investing happens in stages. Deal analysis and purchase (a few hours to a year). NOI and CAP rate are very important and allow you to compare different properties. You also need to consider one time costs. Property management (years and years). You claim to have some expertise at this, which is very good. Exit strategy (selling the property, months to years).
Sellers tend to be optimistic, cheerful and complete liars. They will confidentially tell you that the roof may need $500 of repair when it needs a $15,000 replacement in the next year or two. Burnt out owners may not be cheerful. Experienced sellers know everything and you know very little. They will wheel and deal, so don’t be bashful about asking for very favaorable terms including owner financing. You will never get more than you ask for. There is a specific commercial real estate section on this website.
Good Luck!