Real Estate Investment Opportunity

How to Spot A Real Estate Investment Opportunity

If you are looking for a real estate investment opportunity, you may want to contact Calkain. We help individuals just like yourself invest in the right properties. With one of our dedicated professional’s assistance, you may find the investment opportunity you’ve always dreamed about.

What Is Real Estate Investing?

In basic terms, real estate investing refers to acquiring a piece of tangible property and then finding a tenant to rent the property. The tenant is allowed access to the property for a certain length of time when he or she pays rent to the investor. There are many real estate investment opportunities out there, and they can be financially rewarding for investors.

Real Estate Investment Opportunity

Age old wisdom that real estate is a good investment holds true even in today’s world, and a good real estate investment opportunity is not one to pass up. Calkain assists investors in identifying and analyzing real estate opportunities to determine if they are a worthwhile investment that meets their needs. We have done this on behalf of our clients for many years. Contact us to learn more about how we can assist you in this way, with the assistance of one of our investment advisors.

Real Estate Factors to Consider

Not all real estate is equal, which is reflected in the value of investing in any one particular real estate opportunity. One real estate investment opportunity may make more sense than other, and the obverse is true as well. As seasoned investment advisors, Calkain pays close attention to markets, trends, and forecasts. Location is also key, and we stay current on what real estate properties are available in areas more likely to result in profitable returns. When considering a real estate investment opportunity, all of these factors must be taken into account.

  • Residential: You may absolutely love a property, or you may not be crazy about it, but you recognize that it’s in a prime location and will undoubtedly gain in value. However, unless you are prepared to sell and find a new home when the market is advantageous to do so, this is a limited investment.
  • Commercial: As a real estate investment opportunity, the commercial sector offers several options:
    • Single tenant. A common example of this type of real estate investment opportunity is a residential home rental. Another common example is a commercial unit such as a fast food restaurant, car wash, etc.
    • Multiple tenant. Shopping malls are a common example of this. The primary advantage of a multi-tenant lease. A triple net or NNN lease is just one type of multiple tenant real estate investment opportunity that offers many advantages. It’s a popular choice among our Calkain clients. Contact us to learn more.  
    • Storage unit facilities. Such buildings can be relatively cheap to maintain as compared to larger and more complicated commercial buildings. However, as a return on investment, the monthly income will generally be less than that of a NNN real estate investment opportunity and the initial cost may be just as high.
    • Apartments or multi-family dwellings. This can provide a steady investment income, and one that is predictable. If one family is late on their rent, or moves out, the remaining units can still generate a sizeable income. However, there are some potential downsides such as vulnerability to bad renters, etc.
    • Industrial properties such as warehouses, research facilities, manufacturing facilities, etc. As a real estate investment opportunity, these types of buildings could be considered more niche markets because they are only appropriate for certain types of tenants.

What Are Different Types of Real Estate Investments?

If you are considering a real estate investment opportunity, you might be wondering about the different types of properties you can purchase. As a real estate investment broker can attest, you can invest in many types of different real estate, including:

  • Commercial Real Estate: These investments mainly consist of office buildings and come with long-term leases. If your leases are locked in for several years, you can have guaranteed cash flow for a long time.
  • Retail Real Estate: This real estate investment opportunity involves properties like strip malls and shopping centers. Sometimes the investor gets a percentage of a store’s retail sales.
  • Residential Real Estate: With residential real estate, investors rent out apartments and houses to individuals and families. These leases usually are not long-term like commercial and retail leases are. In fact, most residential leases run 12 months. This allows investors to adjust to market conditions more quickly.
  • Industrial Real Estate: Investors may also look into buying industrial real estate, which includes manufacturing facilities, distribution centers and assembly plants.

Real Estate Investing Mistakes to Avoid

Real estate investing can be quite profitable if you do it correctly. However, it is easy to make mistakes when you’re new to the game. Here are common real estate investing mistakes to avoid making:

  • Not Educating Yourself First: Many first time investors make the mistake of not learning enough about the real estate market before investing in property. If you make an effort to learn the ins and outs of real estate investing from the professionals, you may be more successful.
  • Failing to Create a Plan: In order to have success with real estate investing, you need to have a solid plan. Before you seek out any real estate investment opportunity, you should determine how you will find your leads, how many phone calls you will make per week and how many offers you will make every week.
  • Not Looking Over Properties Thoroughly Enough: Before you invest in a property, you should carefully look it over at least three times. This gives you enough time to check a property for foundation cracks, hidden leaks and other issues.

How do I recognize a good real estate investment opportunity?

You may wish to pursue a real estate investment opportunity, but are unsure as to whether or not it’s a good one. Calkain works with individuals to help them identify investment opportunities that match their needs. There are many considerations and we can guide you through the process of making informed decisions. Below are some of the criteria that you may wish to think about before committing to a real estate investment opportunity. Call us to arrange a consultation with one of our investment specialists to learn more about how we can assist you in making the best choices for your circumstances.

Is the real estate investment opportunity a good fit for your portfolio?

There is a plethora of real estate choices that an investor can make, but not all are necessarily a good fit for their portfolio. As an example, if an investor has historically taken advantage of a real estate investment opportunity such as multi-tenant building but is looking at large, single-tenant vacancies like warehouses or farms. They may work just fine for the investor, but if they are unfamiliar with the nature and workflow of ideal tenants for those specialty properties, they may have challenges finding and keeping long term occupants. As a result, they may suffer a high percentage of vacancies, with no rental income during those downtimes. However, if they choose a real estate investment opportunity with which they are already familiar, there is likely to be fewer surprises and difficulties. Calkain maintains an awareness of current market availability and can recommend a real estate investment opportunity that is right for your portfolio.

Does the real estate investment opportunity offer the potential for tax savings?  

An important consideration when reviewing a real estate investment opportunity is the potential tax obligations associated with that property. Our investment specialists at Calkain are familiar with tax laws and how they can impact a real estate investment that might otherwise be a good opportunity. There should be a good balance, and ideally, tax advantages associated with a real estate investment opportunity. We can help you achieve this goal.

Does the real estate investment opportunity offer consistent and reliable revenue?

Some types of real estate investment opportunities are better than others if you wish to receive a regular and reliable income in the form of rent paid by the tenant. This may not be a consideration for all investors, but is something you should clarify for yourself before deciding on a real estate investment opportunity. Assuming that you are interested in a revenue generating property, consider these points:

  • Is the type of real estate investment opportunity one that will attract paying tenants? For instance, a for-profit company may have more funds than a not-for-profit organization. An established and reputable company is more likely to be financially solvent than a start-up. Talk to one of our investment specialists about identifying properties that are more conducive to earning revenue.
  • Is the real estate investment opportunity’s location attractive to potential paying tenants? Your investment specialist at Calkain can provide you a history of existing and previous tenants of a property to help you determine the answer to this question.

Find the Real Estate Investment Opportunity That Is Best for You

Calkain specializes in tailoring a client’s needs with quality investment opportunities. Give us a call today to schedule an appointment with an advisor who can help you make the right investment choices. If you are looking to find out more information about a real estate investment opportunity, you may want to call Calkain today!

Traci BidingerReal Estate Investment Opportunity