You have probably heard the phrase “location,location,location”!
What does this phrase actually mean? It means that the real estate project will succeed, if its design and use matches the area in which it is located. The area must also be suitable for the financial return that is projected by your Real Estate Agent and by you.
Real Estate is a great investment if you understand all of the costs that it entails, and the possible financial return, annually and over a longer period.
Your Real Estate Broker or Agent ,should be able to explain everything that is involved, from possible rezoning to suit the projected use, to the time it might take to obtain City approvals for your project.
Our efforts have always been to approach real estate from an investor’s point of view. In other words, the merits of owning real estate, whether it is raw land or an apartment building or a commercial office building, or a stand- alone commercial building, always depends on its financial viability .
Here are some questions to ask:
1.Is the cash flow projection realistic and reliable, so that the income will easily cover the costs, including mortgage payments.?
2. Is the area suited to your intended use? That means matching the buildings around it?
(Note: Many residents in a single family area, may oppose any commercial use, other than single family, and will come out to a council meeting to oppose your intended use.)
As your Real Estate Guru we will guide you through all of the steps necessary for you to fulfill your short and long term real estate investment goals…
You can write us at any time for our comments on your proposed Real Estate ventures.
Brenlee Werner, the Real Estate GURU