Wholesaler · Jacksonville, FL · Member since 2015 · 47 posts · 5 votes
I run into Commercial properties quite a bit. I tend to pass on them but now I'm a little bit curious to find out what does an investor look for in commercial property if one was to invest in that area? What kind of numbers need to be ran and such?
Lender · Boise, ID · Member since 2016 · 38 posts · 7 votes
10y
As an investor, you care about CAP rates, LTV, and Cash Flow; the latter of which originate from market rents in your subject property's sub-market in relation to leases currently in place while recognizing sub-market vacancy. What is your strategy? Are you looking at purchasing unstabilized properties with the intention of financing tenant improvements and leasing commissions for value-add and then sell? Or are you looking to purchase 100% occupied stabilized properties for cash flow?