What Factors Need to be Considered Before Determining Interest in a Property

Everyday we invest in our future. We exercise or eat well so that we can live long, healthy lives; we learn new skills and tools to be better versions of ourselves; and we safeguard our financial stability through various opportunities of income. Investing in our financial security sometimes requires that we make difficult decisions; however, to avoid jeopardizing your future, it is essential to first evaluate your options carefully.

Investing in commercial properties can be a highly lucrative way to enhance future success; but without adequate research and industry knowledge, properties can instead become a drain on income. It is critical to have a foundational understanding of how property investment works and how various investments may best serve you and your interests. Before determining your initial interest in a property, there are a few factors that need to be considered:

Future Plans for the Property

Commercial properties come in many different forms, and it can be tricky to navigate through the various options. Depending on what your future plans are, you might search for a specific type of property. For instance, if you plan on renting out space or units to retail tenants, the location will be especially important.

Success of the Area Surrounding the Property

The real estate market tends to naturally alert buyers of the areas that are doing well versus the areas that aren’t as desirable for commercial property owners—the numbers don’t lie. Evaluating the success of the areas immediately nearby a property can let you know if it has financial potential or not.

Cost-Benefit Analysis

One of the most critical components of your research will be conducting a cost-benefit analysis of the overall investment, which should include estimations of future income. This can be a challenging part of the process, as it requires strong knowledge of real estate market trends. If a property has a stronger potential to offer you more in the long run than draining your pockets, the investment might secure your financial future.

Integrity of Property

Before determining your level of interest in a property, it is critical to have an inspection and assessment performed. As a large part of the cost-benefit analysis, it’s important to factor in potential setbacks, construction, or alterations you’ll need to make to the property to make it safe and up to code.

Knowledge of Laws and Regulations

There is plenty of red tape in the property investment industry—many laws, policies, regulations, and guidelines that require investors to have an overall knowledge of property investment and management. The process of investment can be complex and arduous without the right guidance, and can often lead to costly infractions that significantly set back investors financially and temporally.

Level of Ongoing Commitment

Your interest in a property should also consider the level of ongoing involvement you wish to have in maintaining and managing it. If you imagine yourself utilizing the services of a property management company, that will likely need to be factored into your overall expenses and weighed in the cost-benefit analysis process.

Invest Your Trust in Landwin

The investment experts here at Landwin have provided countless clients and investors the opportunity to enhance their income and safeguard their futures through property investment. Our offices reside in Encino and Century City, CA, where plenty of lucrative property investment opportunities arise; however, with over 40 years of experience in the industry, we are certainly not limited to Los Angeles—we extend our services to 20 states in the U.S., giving us an even more well-rounded concept of the real estate industry and providing our investors with even more opportunities. We have even bigger plans for expansion in the future.

The points illustrated in this article are important for any investor to consider before determining initial interest in a property; however, it is critical to go through a more comprehensive checklist before considering investing. Our priority is always the financial security of our investors and clients, which is why we always implement our 58-point due diligence checklist before considering any property. If you are interested in becoming involved in property investment, or would like to learn more about Landwin and our philosophies, please call us directly.

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Martin Landis

Hello everyone! It’s Martin Landis here. In my role as the Managing Member (CEO) of the real estate advisory firm Landwin, LLC, I draw upon my many years of business experience in real estate and marketing.