Know How to Get Out Before You Get Into Commercial Real Estate

Posted on December 20, 2018

One of the first questions that individuals should address before investing in commercial real estate is how they plan to get their money out of income-producing property. Although there is no right or wrong answer, it is important for investors to consider their exit strategy from the onset in order to properly structure their investment for maximum net operating income and minimal tax liabilities. Following are some questions for consideration:

• Why am I buying the property?
• What do I expect to gain from the investment?
• How much can I risk to lose on the investment?
• How long do I expect to hold on to the property?
• Do I have the time to the maintain property and tenant occupancy?
• Are their opportunities to raise rents with minimal investment?
• How will a property sale affect my taxes?

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.