GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Pros and cons for investing in commerical properties...

John Marco · 03-10-2006, 08:41 PM

Pro's:

In most markets commercial values are a derivative of their operating income instead of small investor driven speculation
Decent commercial properties usually yield about a 10% cash on cash return with 20% down, not counting mortgage pay down and appreciation
Boring, predictable appreciation
Easy to finance if leased to stable tenants

Con's:

Values are interest rate sensitive, because the higher the interest rate, the more money required to cash flow, and thus the lower the value
Office properties are sensitive to the economy. It is hard to find tenants in bad times. Apartments are less sensitive but more management is required

03-10-2006, 08:41 PM
John Marco Confirmed User Join Date: May 2005 Posts: 912	Pro's: In most markets commercial values are a derivative of their operating income instead of small investor driven speculation Decent commercial properties usually yield about a 10% cash on cash return with 20% down, not counting mortgage pay down and appreciation Boring, predictable appreciation Easy to finance if leased to stable tenants Con's: Values are interest rate sensitive, because the higher the interest rate, the more money required to cash flow, and thus the lower the value Office properties are sensitive to the economy. It is hard to find tenants in bad times. Apartments are less sensitive but more management is required __________________ WEBCAMS.COM $42+ PPS or revshare ICQ: 476-111 Google Talk: Webcams.com