Charlotte NC Commercial - Blog #commercial real estate investing

Basic Strategies In Choosing Investment Properties

Wed, 01 Jul 2026 10:45:00 -0400

Basic Strategies In Choosing Investment Properties

No single property can fit all of the investment goals and rules an investor has set. Even if the investor tried to build a property to specifications, he would find some things “not quite right”. The investor is, therefore, wise to anticipate problems and have some basic strategies for dealing with them. Here are some suggestions to help the investor devise other approaches to meet special needs:

Energy saving potential is more important than style or appearance. Given increasing shortages of natural gas and rising prices of fuel, energy saving has become paramount for successful real estate investing.

Location is usually more important than the buildings on the lot. You can always make repairs and improvements to a building, but you can’t do anything to change the qualities of a location.
An older property is preferable to a new property if you want to be reasonably certain about income and cost potentials and are seeking the most rentable space for each investment dollar.
Good workmanship is preferable to good materials if you have to make a choice. Workmanship can overcome the defects of poor materials, but you would pay constantly for poor workmanship. Hopefully, you can avoid this kind of choice because poor workmanship and poor materials mean extra costs and continuing problems.
Low down payments are preferable because they increase the earning rates on your equity. However, be sure you have a financial reserve in case the property does not produce enough net income at times to pay for the financing.
Plain properties without distinctive architecture or other characteristics are the most durable investments. Luxuries or extras may make the property look better, but they do not improve the income potential.
In a given market, smaller units will usually be more saleable, easier to manage, and easier to keep rented in changing markets. Any apartment property with more than 20 units will require professional management.
Size of the property and units within the property should fit the average for the market. Smaller or larger units often present problems that result in lower prices and higher costs.
Use experts when in doubt. The costs of using appraisers, builders, lenders, and lawyers are considerably less than those associated with making mistakes. If your investment cannot produce enough income to let you pay for expert help, then it may be the wrong investment.
Convertibility. The property should lend itself to changes as the market changes so that you can always maximize the rent potential.
Flexibility. The space in the property should be easily changed to meet different user needs at minimal costs of time and money.
Specifying repairs to be made before buying is a safer, less costly financial strategy. Estimate them ahead of time, thereby being able to negotiate for a lower price.
Financing trade-offs. To keep loan payments low, negotiate for long-term payout bases at equivalent rates. Include in your estimates the initial costs of the loan and the repayment costs and privileges.

A Comfort Zone in Loans and Investments

Wed, 01 Jul 2026 10:45:00 -0400

A Comfort Zone in Loans and Investments

Each investor has a “comfort zone” about loans. The leverage seeker wants the largest loan that is practical. Others may have experience or training that calls for no loans at all. They must have the property free and clear.

Most of us have a loan comfort zone somewhere between these extremes. Nearly everyone accepts the idea of some sort of mortgage. The use of OPM (other people’s money) makes sense.

The comfort in loans may affect the type of investment. Many of these “free and clear” owners prefer land as the investment. They want no improvements on it, just the bare land.

Here’s some of the benefits of investing in unimproved land. These can make a lot of sense.

There are no tenant problems. There may be a simple lease for farming or grazing, but only limited contacts between lessor and lessee. Often, the investment land lies unused.
A well-chosen land investment can result in huge profits. We have all heard stories of owners who have purchased land for just a few dollars an acre, then later sold for millions! (The key is “well-chosen”).
Land is a secure investment. Even in the worst economic situations, the land is still there. Value can fluctuate, but the investment will not disappear.
Land represents wealth. It can be a quick source of cash for an owner to use for another investment. Land looks good on a financial statement. It adds permanence and stability to an applicant for loans or for a line of credit.

Who Buys Commercial Property

Wed, 01 Jul 2026 10:44:00 -0400

Who Buys Commercial Property

When we represent a seller of a commercial property, we try to determine, as soon as possible in the marketing process, what type of buyer is most likely to be interested in this particular property. We then focus the main appeal on those elements that are most important to that type of buyer.

Types of Buyers

Normally there are three types of buyers for commercial property:

Investors, who seek an income-producing investment in which to place their surplus funds.
Speculators, who buy so they can sell when the market goes up.
Users, who seek sites for their businesses.

The seller’s agent will appeal to the special interests of each of the three types of buyers. Advertising and marketing materials should develop each appeal and furnish supporting facts, realistic projections, and professional information.

The Appeal

For the primarily income-seeking buyers, we focus on the financial data, concentrating on rentals from the property, terms of the leases, maintenance charges, mortgage information, and net income. We will also demonstrate the probability of income growth from the property.

For the speculator-buyer, the stress is on the potential for a resale profit. We might show that the property is in the line of future development (new public transportation is planned or being built, or there are other newly built or renovated commercial properties as neighbors). Demonstrate that the property is in a growing, vital locale.

Since income is of only a secondary interest to the speculator-buyer, we’ll go no further than the current income status. The focus will be on the potential for profitable resale.

The location will be of greatest interest to the user-buyer. Is it right for the user’s business? Is the building in good physical condition, or must it first be remodeled, improved, or up-dated? We must demonstrate the wealth and habits of the surrounding population.

With each type of potential buyer, the marketing effort will focus where it is most likely to produce a prompt, successful sale.

When you are ready to sell your investment property or are in the market to increase your investment portfolio, our company can help you by giving advice and suggestions on what is available on the market today or help you with setting the sale price for a satisfying profit on the property that you now own.

Benefits In Workplace Changes

Thu, 07 May 2026 10:45:32 -0400

Benefits In Workplace Changes

Working from home is now becoming a trend. It is remaking how we work, the tools we use for that work, how we communicate at work, the hours we work and even how we dress for work.

A major benefit to the employer is being able to downsize on square footage of space for the company. A major benefit to the worker is that they can buy a home outside of the business area in a suburb or at an ocean resort with the great locations that they desire and not have to think about what the daily commute will be.

Employees who work from home have changed some sectors of commercial real estate, both in terms of how spaces are designed, how many square feet the company needs for workers and where the company is located.

Many companies have downsized their office space to save money by allowing or even encouraging employees to work from home. What was born from necessity during the last recession has turned out to have greater benefits than lower rent on the commercial office.

It has been reported that employees that work from home are more productive, with less distractions, and seem more satisfied in general.

If the same employees were in the office, there are coffee breaks, socializing and interruptions through out the day, that is not happening at the home office. The employee can work in any kind of clothes that they desire, no longer have to spend money on lunches, gasoline, parking and the day to day expenses that occur when commuting to an office.

This type of work has also been a boon for parents who need more flexibility in their schedule to accommodate child care, school events and sick kids. Sometimes it can be a problem to work at home with small children. But these are small problems that can be solved by balancing work and personal live

Recruiting the best talent, employers find that the work at home concept is a major perk.

Remote work does have its share of problems. Some people dislike working in the same place where they live and relax, and it can be difficult to create and maintain a company environment without co-workers being in the same room. But the concept of not commuting on a crowed bus or slow and go traffic is a major benefits.

Above all, buying a home in a more desirable location is a great plus for the employee and being able to downsize on square footage is a major plus for the company.

Get Started Now

The Future Of Commercial Real Estate Investments

Thu, 07 May 2026 10:45:20 -0400

The Future Of Commercial Real EstateInvestments

Which way is the right way in real estate investments in 2026? What is the future in these investments? An answer to these questions can be an interview with an interested professional real estate broker who can act as a real estate investment counselor. Each prospective investor can be interviewed in depth to find out specific needs in an income property. At the same time their needs are being evaluated, the broker will also communicate what benefits are available in various properties and how to identify them.

Some considerations should be given to the risk of loss for each age bracket of investor. Should an older investor purchase a property with the smallest down payment and highest leverage position? This will limit cash flow and may cause the property to have a “negative” cash flow. Is this what they want–or do they want cash flow from the property?

How about the younger investors? Are their objectives for long-range estate building or for current cash flow? Would they be more willing to take chances with a marginal investment that might bring big returns later?

Each investor must decide these answers for himself or herself. But, only after enough information has been furnished so that an intelligent decision can be made.

When a new investor has a better idea of the type of property that will do the right job for him/her, or them, then and only then should they be exposed to the market place and shown specific properties. Now the investor or investors can evaluate the various benefits and risks for the information shown on each property and apply the information to their own situation.

What is right for you? A new rental unit? A strip center? A one hundred-unit apartment property? . Real estate counseling can show you that you can choose which is right for you and know the reasons why it is right!

Get Started Now

Investing To Make Money

Sun, 01 Feb 2026 13:22:00 -0500

Investing To Make Money

When you make an investment in real estate, it is implied that you want to make money. The cash can come from direct income from the property or from capital gains from a sale after an increase in value. Either way, the investment must be managed, considered, and watched at all times. If the owner and manager are taking care of business, there may be ways to increase the income, and the value. There is always the possibility to make a sale for the right price and terms. Keeping aware of the market might bring an opportunity to make a tax-deferred exchange into a property with more benefits for the owner.

Real estate investors often own various kinds of properties. They may have a mix of commercial, residential income, land and groups of houses. These owners have an extensive portfolio of investment real estate.

Owners of portfolios of stocks and bonds meet with or call their broker often. Like seeing a doctor or dentist at regular intervals, it makes sense for real estate investors also to meet with their real estate investment representative or counselor at least a couple of times a year. Exchanging ideas with the professional who has the daily pulse of the real estate market can be profitable. At each meeting, the investor can plan on finding out the current market conditions that will have an effect on equities that are now owned or that could be acquired.

Get Started Now

Physical Inspection Of Investment Property

Mon, 01 Dec 2025 13:58:00 -0500

Physical Inspection Of Investment Property

When a buyer makes an offer on an investment property, it is usually only after a thorough inspection of all of the data that is available on the financial records of the building. The physical inspection of the property could be as important or more important than the rents and expenses.

Some investors pay more attention to the data than the structure. With a physical inspection on the potential investment property, a buyer may be able to:

Work out a better price.
Get ready for any upgrading or maintenance expenses.
Avoid catastrophic repair bills for detectable problems.
When actually purchased, get a higher return on the investment.

Where to Start

First, the investor needs to know what experts to call. He needs to know what needs to be inspected and how to do it. The property must be verified as physically sound and is a worthwhile investment.

There are some broad categories of problems that investment properties are subject to, and the type of expert that is needed for the inspection.
Soil Conditions. When a property is located on certain types of land, a professional soil engineer or geologist should be called. Property could be low lying or reclaimed land; a former landfill or dump area; on hilly or mountainous terrain; located at lakeside or seaside; has structures or piers, pilings, stilts, or other unusual foundation conditions. Is the actual foundation of the building dry and clean with no holes or cracks.
Drainage. If the property is located within a flood plain area, it should be carefully examined by a civil engineer. The buyer can check basements and interior walls for signs of water damage. Also an inspection of the plumbing system for any signs of leaks or signs of old leaks.
Elevators. If the property has an elevator, has it had the proper inspections in recent months? Elevators and electric systems should be inspected by professionals in those fields.
Fire Suppression System. Is the fire system inspection up to date?
HVAC. Representatives of the companies that manufactured or installed the heating, ventilating, and air-conditioning systems.
Roofing. A roofing consultant or structural engineer should be called to determine age, condition, ability to withstand loads, etc.
Pests. Pest control companies are able to check for termites and other damage-causing pests.
Environmental Inspection. Check for contaminants on or near the property.

Government Records

Check the local building department and see what permits were issued and when. Some records may also show when fire inspections or health and safety inspections were made. Any violations will be on record.

The plans and specifications of the building may also be on file. These may contain the names of the original architect, engineer, contractor and developer. The investor may wish to contact one or more of these if any questions need an answer.

Get Started Now

Major Categories For Commercial Investments

Wed, 01 Oct 2025 11:58:00 -0400

Major Categories For Commercial Investments

There are a wide range of opportunities out there in commercial properties. Commercial properties provide space for businesses, and the kinds of properties are as diverse as the businesses.

Following are the major categories of commercial properties:

Retail

In this category are properties that are rented to tenants who sell goods directly to the public. Under this main classification are the following:

Strip Center. A retail center with a straight line of stores.
Neighborhood Center. A small shopping center with a supermarket or drug store, typically having up to 50,000 square feet of rental space.
Community Center. A medium-size center, with about 50 stores and up to 150,000 square feet of rental space.
Regional Center. A large center, usually enclosed, with two to five department stores and from 400,000 to 1 million square feet of rental space with food courts, and recreation centers.
Super Regional Center. A large regional center, with 750,000 to 2 million square feet of rental space with much more than the average center with high-end restaurants & movie theaters.

Theme Center

A retail center designed around a common theme. Under this group are the following:

Off-Price Center: A retail center that caters to tenants offering merchandise at discount prices.
Factory Outlet. A retail center that caters to manufacturers who sell their goods directly to the public.
Fashion Center. A retail center that deals in high-priced, high fashion merchandise.
Car-Care Center. A retail center that caters to tenants who deal in automobiles and the automobile aftermarket business.

Office Buildings

Office Buildings that are rented to non-retail commercial users. These buildings are designed as garden, mid-rise, or high-rise structures.

Business Park

A group of rental buildings designed for office, manufacturing and warehouse users.

Warehouses

Buildings that provide rental space to users of bulk storage. There are two types:

Light Industrial. Buildings that cater to storage users.
Heavy Industrial. Buildings that cater to manufacturers.

Self Storage Units

Buildings designed to rent space to small storage users. Usually 25 square feet to 500 square feet.

Lodging

Properties that lease living space to individuals on a daily basis or longer. These properties can have price ranges from budget to mid-range to luxury. They may be marketed toward the transient, resort, convention, or commercial user. Under this category are the following:

Motel. A property in which a renter can park his automobile adjacent to his rental unit. This type of property is usually a garden type building with few amenities.
Hotel. A higher quality property, with more amenities than a motel. These properties can be garden-style, mid-rise, or high-rise in design. They usually contain such amenities as food and beverage services, conference areas, or health facilities.
Suites. A lodging property that offers a living and bedroom area.

Multi-Use

Properties that combine two or more of the following uses: residential, commercial (retail or office), or lodging.

Condominium

Commercial properties that are either converted or developed to be sold to the individual users. These can be either retail, office or industrial properties.

Single Purpose Buildings

Properties designed for a specific purpose, for example, a theater or a bowling alley.

Your Investment

Successful commercial properties give their users what they want and what they need. Some properties can be upgraded by renovation and a change to a different use.

Get Started Now

15 Critical Questions To Answer To Keep Your Real Estate Investment On Track

Thu, 01 May 2025 23:46:02 -0400

In this issue

15 Critical Questions To Answer To Keep Your Real Estate Investment On Track

Office Building Comparisons

Newer office buildings may fill up at the expense of older office buildings. Since new buildings cost more to build than the older ones, rents may be higher. The actual dollars-per-square-foot costs must be compared, along with other benefits that the tenant may receive, before a final decision is made by the tenant on staying or moving. One of the most important jobs of a leasing agent for a building with available space is to analyze other buildings to see if any tenant could be induced to move. Here are some of the items for comparison:......(more)

Factors To Consider For Any Commercial Investment

When any particular commercial building is under consideration for purchase, there are a number of factors that should be considered. Here are some of the more important points:.....(more)

How To Negotiate A Lease Termination

One or both of the parties to a lease of commercial or office space may want to sever the relationship prior to the end of the lease term. A tenant may want to terminate the tenancy, for example, because his business has grown since he first moved in and he requires larger quarters. A landlord may want to terminate the tenancy because there is a better prospective tenant available.....(more) Click Here For This Months Newsletter

How To Increase The Value Of Investment Real Estate

Sat, 01 Feb 2025 16:02:36 -0500

In this issue

Increasing Market Value Of The Investment

Since the value of a rental property is based directly on the cash return, adding value means increasing cash flow. When small investors set out to increase real estate values, the steps are in upgrading houses, duplexes, triplexes, etc., enhancing the cash flow and therefore increasing equity when the property is sold. When working with larger commercial and apartment properties be aware of the things that have the potential of adding value. Do the required homework on the property. A feasibility study can measure the capacity to add value. There may be many other measures that must be taken, such as market analyses, applications for new zoning, design and construction planning and a plan for marketing......(more)

Building On Leased Land

Building on leased land results in a separate ownership of that building and the land. The two owners, one of the land, and one the improvement, come together in one investment parcel. In this situation, the landowner wants someone to develop the land, but still wants to continue in ownership. The developer prefers to lease rather than buy the property. One owner wants the security of owning the land with a good lease to the owner of the improvement. The owner of the building puts up less money since the ownership of land is not part of the expenses in the development.....(more)

The Fair Cancellation Clause In A Commercial Lease

Whether a rental market is weak or strong, lease negotiations can be difficult when the landlord wants concessions that are different from the norm. One situation that happens is when the owner of an office building or other commercial property intends to sell when market conditions improve, whether that occurs next year or five years from now. Another is the holder of vacant or underimproved property who plans to develop it whenever market conditions justify. In the meantime, these properties must be leased to generate sufficient cash flow to pay operating costs and debt service. Such an owner will be amenable to giving significant concessions, including a low rental, provided the landlord can cancel the lease during the term....(more)

How Property Management Makes Asset More Valuable

Management of a building is not just handling problems as they arise and renting units, it is making the asset more valuable to the owner by concentrating on every aspect of the property. Some owners of very large income properties still do not take professional property management seriously and fall behind in values. The professional property manager is keenly aware of all of the recurring costs of a property and how they can affect the bottom line. The owner may applaud and give attention to a one-time saving on a “high-cost” item such as insurance on the property while overlooking the multipliers in the number of units......(more) Click Here For This Months Newsletter