10 Things to Look Out For Before Buying Commercial Real Estate in Boise

Commercial real estate in Boise is about far more than aesthetics. A property might appeal to your senses, but it’s important to remember that real estate investing is a business. That means you should be paying careful attention to the main elements of the deal: the terms and the return on investment. Buying a property based upon aesthetics alone, or your “gut instinct” is a sure way to get underwater, and quickly.

You need to develop a business plan which outlines realistic goals over the one, three, five, and ten year marks. There are many resources for developing a plan for your real estate investment business, but mentorship is likely the best option—learn from someone who has already made the mistakes.

There is an old saying in real estate: a rental property yielding 1% its sale price per month is a good deal (I.E. if a property cost you $300,000 you should try get $3000 per month, in rent, or about 12% annual yield.) Learning and internalizing adages such as this (that you’ll likely learn from a mentor figure) will help you internalize many of the lessons you will learn (hopefully not first hand).

So, to get you in the right mindset about making commercial real estate investments in Boise, we’ve prepared a list of 10 considerations as you move forward into life as a commercial real estate investor.

This post originally appeared on Chase Erkins’ blog and is republished with permission.
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