Important Factors in Decision to Invest in Real Estate
Location, location, location
Price - is cash necessary
Terms and financing - seller names price, buyer names terms
Context - find worst building in best district
Condition - look for cosmetic problems, not structural
Demand - what is the competition among buyers
Competition - what are new properties coming on market, will they improve your property and make it more valuable
Existing leases - are they good or bad
Existing operating expenses
Cost to rehab
Replacement cost - compare with new construction
Higher and better use - will market allow for better cash flow
Zoning - how restrictive
Historic tax credits - consider as "frosting on the cake"
Motives of seller - why are they selling (ask them)
Availability of investors - prepare a feasibility analysis to show them
Economic cycle - is the timing good, or is there a down-swing
Appraised value - independent appraisal (don't base on insured or assessed values)
From a presentation by Peter Allen, Realtor.
Suggested other pages...
Revitalization Strategies
Functional Strategies
Financial Incentives
Investing in Real Estate
