Investor Services
JD Forster Company provides Kansas City Commercial Real Estate Investor Services involving Retail or Office buildings and Industrial Office Warehouses.
Locating the Right Property
There are many benefits of owning Kansas City area Investment Property, whether it be Retail Buildings, Office Buildings, Industrial Buildings, or Warehouses. Locating an Investment Property for the right price, can be very rewarding. But the Location of a property can be very crucial to your success and the Tenants’ desire to locate there. Location can be Everything. We can locate all properties that fit your criteria within a timely manner.
PROS:
Income Potential
Income Potential is the most obvious.
Tenants have a vested interest in maintaining your property
Tenants have a vested interest of maintaining their location since it is a reflection of their business; hence, taking care of your building.
Triple net leases
Triple net leases generally are designed for the property owner’s benefit to require the tenant to pay the bulk of the expenses of real estate taxes, insurance, and maintenance of the property. Every triple net lease or net lease covers different items, so the leases need to be reviewed of a building you are purchasing to know what the tenants are paying. The net charges generally are adjusted every year depending on the maintenance and the variance of taxes and insurance, but under normal circumstances will not vary by much.
CONS:
Single Tenant - Great Full, BAD Vacant
In a single tenant building, it is great when you have a very strong national tenant who is paying their rent, and on time. It is BAD if you lose that tenant and are having trouble finding another single tenant. Therefore, you must value and take good care of the tenant you have.
Multi-Tenant - The Good, The Bad, and The Ugly
In the situation of a multi-tenant building, you have multiple leases, Common Area Maintenance costs that vary every year, Taxes and Insurance variance that need to be adjusted every year, and more tenants that may have maintenance problems for you to handle. Therefore, keep your books straight and your maintenance under control and timely. The good thing is that if you lose a tenant, it’s not a direct blow to the pocket book!!
Larger Initial Investment
Another con is it requires a larger initial investment in Commercial Real Estate than other investments. To buy a property at a good value and turn it around, money has to be readily available. Architects have to be hired. Bids have to be reviewed closely. Contractors and Subs need to be closely watched… Okay, just kidding Contractors. You get my point.
Replacement of Big Ticket Items
You have to agree that it would be a big hit if you need to replace something that covers all of your tenants like a new roof. To keep your tenants, you have to maintain your property. To keep the price per square foot to par, you have to go over and beyond to keep the property looking as nice as possible at the lowest cost you can get.
You would hope that the gains outweigh the costs. Don’t get me wrong. I’m NOT being Negative Nelly, because Commercial Real Estate can be a great investment, but you have to know some pretty important facts before going in. Now let US locate the Right Property for You!
