Expert: Stephen A. Cross, CCIM - 6/3/2011

Question
Dear Sir
       I,am interesting in Real Estate investment ...what is the best way to invest 200000$ two handed thousands in commercial real estate in Arizona state ..Kindly try to give options and its income ...Thank you in advance Rearguards

Answer
Shamil:

On Tuesday of this week a client of mine closed escrow on a 12,000 SF office building suitable for 5 tenants. The purchase price was $1,300,000.  This investor paid all cash and lives in the area where the building is located.

$200,000 would be a sufficient down payment for any number of commercial investments, however, because you reside in Egypt you would need to rely on local agents and property managers to manage the property and locate tenants, and both would charge a fee. Such an arrangement on a small property would be expensive and, in my opinion, not a wise use of your money.

My advice for you would be postpone buying a small commercial property and consider pooling your funds with other investors you are familiar with and together purchasing an investment grade office or medical property. Such properties would likely be in the 40,000 to 100,000 SF size range and be priced in the $4,000,000 to $20,000,000 range.

Also, I suggest you do not purchase any properties without first seeing them in person.

Very truly yours,

Steve
Stephen A. Cross, CCIM
CROSS Commercial Realty Advisors
Advisor to Commercial Investors, Tenants and Buyers
10601 N. Hayden Road, Suite 108
Scottsdale, AZ 85260
480-998-7998
steve@crossrealty.com
www.crossrealty.com