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Commercial properties come in all shapes, sizes and prices. It is therefore very important that you work with a broker that can help you determine which of the many properties is best for you. (See last week’s column about how to choose a broker). As I started to outline this column I soon realized that there is just too much information to cover in one blog. So, I will publish next Monday and every four or five days from there on to try to cover this subject.
I am assuming that you intend to purchase a commercial property for income. That is why commercial properties are so attractive to individual investors. Most commercial properties that are appropriate for individual investors will have leases that provide enough income to cover the expenses and then some.Before you make an offer on a property, you first need to complete a needs based analysis based upon how much money you have to invest in a commercial property, how much income you have to cover the shortfalls of the property, and what kind of property it is that you want. We will assume that your broker will help you with market prices and so forth, so I won’t try to cover how to price a building in your area.




