Avatar's Blog

Real estate investing, like every other kind of investing should focus on the basic principal of buy low, sell high. Seems simple enough, if we all had crystal balls to tell us which properties were going to go up in value and which were going to get washed dow the drain in Hurrican Katrina or Hurrican Rita or the next Hurricane-of-the-week in the Gulf Coast!

In all seriousness, though, there are some time honored and relatively simple tips that will help you improve your odds in commercial real estate investing.

Location: This seems obvious - choose a good location. But there is more to it than that. Most investors prefer to stay close to home when selecting an investment property. They feel that they know their local market better and can keep tabs on the property as well. This is a good idea if you are investing in relatively small projects, As your investments grow, however, it is prudent to take a more 'global' view.

Look beyond your local city, county and state. Identify hot spots around the country where real estate is beginning to rise in value. Consider trends in life style, business, and weather (yes, Hurricanes Katrina and Rita will have a noticeable and long term impact on real estate in gulf coast cities).

Scour news articles for information about business relocations, quality of life rankings if you are a residential real estate, and other indicators of growth, such as census numbers. Once identified, look at real estate sales in those areas over the recent past to determine trends. If prices have been rising for some time, you may have missed the boat. Look for places where real estate has been relatively stable and are just beginning to show signs of increase in value. Look for reasons for the increase, such as business and population growth. If all the signs are positive, you will see a complete picture of commercial, residential, and construction mileposts that will be the green flag for investment.