Home » Alan Naul » Common Pitfalls Commercial Real Estate Buyers Can Avoid

Common Pitfalls Commercial Real Estate Buyers Can Avoid

Everything about investing in commercial real estate is bigger. The numbers. The risks. The hours. Given the magnitude of commercial real estate investment, it is quite a risky endeavor. A lot of mistakes can be made. Here are some of the more common pitfalls investors can and should avoid.

Ignoring the local market.

When potential investors ignore the state of the local market, the information they take in on commercial real estate evaluation is incomplete. Commercial real estate evaluation is half local market and half property. Local market trends like demographics, income, other similar commercial structures, accessibility, employment and unemployment rates, and many other conditions influence commercial real estate. Not giving local markets the proper consideration can be disastrous.

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Image source: realtybiznews.com

Taking taxes for granted.

Many investors, even seasoned ones, sometimes forget about taxes, and the way they move. Investors should stay updated on all the changes when it comes to taxes. There are several problems that can arise when taxes aren’t paid fully, or at all. The worst of which can land a person in jail. Investors should always have their accountants notify them of any updates taxes go through.

Alan Naul is the founder of Javelin Group, LLC, a company that specializes in strategic investments in commercial real estate, especially for senior living and hospitality sectors. Learn more about Naul and Javelin by checking out this website.

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