Commercial Real Estate Investment/Real estate investment options

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Expert: - 1/5/2012


Question
QUESTION: -I have $20000 cash
-My revenues minus my expenses i am left with $300 every month

What kind of real estate investment options i have acces to?

Thank you very much

ANSWER: Claude:

Get into an investment that has limited risk, is uncomplicated, and fairly simple to manage/maintain.    I suggest a property in the residential category.   The key is to get a lease with all the necessary lease provisions that give you plenty of protection, have financially solid, long term tenant(s) lined up PRIOR to closing on your purchase, and get a good deposit.

Good luck,

-Jim



---------- FOLLOW-UP ----------

QUESTION: Mr. Jim

I thank you for your answer!

Can you be more specific in the kind of "property in the residential category", considering the amount of money that i have access to?

Thank you very much

Answer
Claude:

Depending upon the economic level of the market where you are located, I would think you could acquire a modest residential condo or townhouse for use as an income producing rental investment.  

Be certain that your tenant's lease specifies that the tenant pays all utilities, taxes, etc. or that the monthly rental you are paid is high enough to allow you to not only pay your mortgage, owners insurance, maintenance expense, and real estate taxes. but also allows you to cover the cost of the utilities. taxes, etc. if your tenant does not pay for them directly.

-Jim  

Commercial Real Estate Investment

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Jim Avancena, CPM

Expertise

Best qualified to answer questions that involve commercial leases, that is, basic issues as well as the often unexpected effects of the complexities and inter-relationships of the provisions a lease may contain, explain how seemingly innocuous text in your lease can have a major impact on a Tenant or Landlord and their business operations, and the common practices utilized in the industry. I can untangle most matters that may come up from the time a tenant begins searching for a office or store space and the lease acquisition process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of problems that may come up during the lease term and even after a tenant moves out. I have practical experience with most property management issues and resolving landlord and tenant disputes - especially those involving what may appear to be overcharges assessed for additional lease charges like CAM costs, operating expense reimbursement, real estate taxes, utilities, construction improvements etc. Note that I am not an attorney and cannot provide legal advice.

Experience

Thirty years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area (DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.

Organizations
Currently my three children keep me so busy that it is difficult to participate in organizations with continuing and specific time requirements.

Publications
I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 full pages) feature story on January 13, 1993; titled "Overcharging Overhead".

Education/Credentials
BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license in Maryland and the District of Columbia.

Awards and Honors
The same plaques and honors that most others in my industry have earned. I have none that I consider especially meaningful.

Past/Present Clients
Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.

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