Real Estate Investing

Working with Avison Young’s Capital Markets Net Lease Group

If you are an investor and you’re thinking about getting involved in real estate investing, it’s important to take time to understand what it is and what you need to do in order to be successful. This means identifying your criteria and planning your long term income goals. Avison Young is a real estate firm that prides itself on investment opportunities that have the potential to maximize value and build wealth. Forging long-term relationships with clients from all backgrounds, we are enthusiastic about everything that makes up commercial investments. With locations throughout the United States and around the world, Avison Young is a real estate firm you can count on for trustworthy advice when you need it most.

Before you begin to invest in real estate, you should carry out research so that you know what it takes in order to turn a profit in any type of real estate investment. Fortunately, our Net Lease Group, and its team of advisors, will be on your side; helping you along the way. Our net lease experts know the industry inside and out and can help you identify the best property for your budget, criteria and goals. These properties range from single tenants (banks, QSRs, pharmacies and convenience stores) to multi-tenant double net leases. If at any time you would like to know more about Calkain and our investment services, please don’t hesitate to contact us here.

Why might an individual want to consider real estate investing?

If you have ever considered the idea of a steady commercial investment, you are not alone. The prospect of owning several properties and making money from them is attractive to many people. Investing in real estate can be a big risk, but the rewards are often worth it. However, in order to reap these rewards, you must be self-motivated and disciplined. Let’s take a look at some of the most appreciated benefits of real estate investment:

1. An Immediate Source of Cash Flow

With a traditional business, it can take a few years before you earn a profit, if you earn one at all. That is usually not the case with real estate investing. Because monthly rents are normally more expensive than long-term mortgage payments, you can start earning money once you have found a suitable tenant. Their monthly payments will cover your mortgage payment and leave you with money left over. In addition, your profits can increase over time if you gradually increase the price of rent though your mortgage payments remain the same, or even decrease after you have paid down the interest.

2. Long-Term Appreciation

One of the most wonderful benefits of real estate investing is that it can create long-term returns. The human population is ever increasing, so there will likely always be a demand for housing. The more demand there is for anything, the higher the market price. The same is true for dwellings. The value of your properties can keep increasing every year, which in turn helps you earn more money. These investments can be an investment of ever increasing returns. This in itself makes it attractive to many people.

3. Tax Deductions

Who doesn’t love getting tax deductions? With Virginia real estate investing, you can get some big deductions on your tax bill every year. When you earn rental income, it is taxed less than traditional businesses because you do not have a self-employment tax. In addition to that, you can deduct the expenses you incur for renting your properties out to tenants. Your deductible expenses might include:

  • Tool purchases to repair or replace structures that you are renting out.
  • Costs for materials such as lumber or plumbing supplies that are needed to rebuild, repair, or replace structures or facilities on your property. This can be substantial, particularly for items such as roof repairs. Also, in many cases your labor costs can also be considered. Check with a certified public accountant to see what qualifies for Internal Revenue Service-approved deductions.
  • Roundtrip mileage costs to/from your location to the rental property as well as parking costs if they are necessary.
  • Long distance phone calls to tenants to check on properties or other related matters.

4. Hands-On Control of Your Investments

Another great aspect of real estate investments is all the control you have. You can influence how much of a return you receive by choosing the most profitable real estate investments, setting rental prices and maintaining your properties. If you were to invest in the stock market instead, you would not have that much control because you do not have any say in company decisions. When it comes to real estate investing, you can purchase various types of properties, including:

  • Single dweller home
  • Multi-family home
  • Duplex
  • Apartment or apartment building
  • Retail or commercially zoned land and/or buildings
  • Public parking lots with rentable parking spaces
  • Rural home and/or land
  • Inner city home and/or land
  • Vacant city lots for future development

5. A Hedge Against Inflation

In most cases, inflation is seen as a negative thing. The prices of goods have gone up, so your money does not go as far. However, real estate investments can actually benefit from inflation. This is because as the inflation rate increases, the value and prices of your properties may go up proportionately. As a result, you might earn an ever increasing profit off your purchase price. Investing in any form of real estate is a hedge against inflation should be undertaken with forethought and due diligence. Before making any real estate purchase, consider the following:

  • Is the price fair? If it’s well below market price, is there a problem with it that cannot reasonably be addressed?
  • Is the property located in an area that will likely increase rather than decrease in value over time? At the very least, you want to invest in real estate that offers a stable market environment.
  • Is there special zoning or restrictions that will inhibit your plans for that property? Is legislation set to be introduced that will change the existing regulations that may cause you problems later on?
  • Is the property comfortably within your price range? Consider the possibility of unanticipated costs in addition to the purchase price.

At Calkain, we pride ourselves on our team’s combined knowledge, expertise, and commitment to providing value to our trusted clients. Allow us to share our experience with you. Give us a call to set up an appointment to discuss your real estate investing options. We can help you make sound real estate investment choices that are within your price range.

6. Enhance the Community

Investing in real estate can also do a lot of good for your community. If you provide nice homes to residents in your community and maintain your properties, you may feel like you are having a positive impact on the community you live in. And in return, a stable community will help keep real estate markets strong and profitable. Investing in the community can be a win-win proposition for everyone.

If you invest the time and money into the real estate market, you can earn some very good rewards. Like most other things, the real estate market has its ups and downs. However, if you continue to work hard and work through the challenges, you can be successful. If you choose to invest in real estate, you may earn a comfortable living through passive income. Contact us at Avison Young today if you would like to know more about the many benefits of investing in net lease and how it may suit your needs.

Recognizing Your Investment as a Business

Even if you don’t know much about real estate investments but are ready to give it a try, it might be a good idea to make a plan of action for the next few years.  Sit down and plan out the number of properties you are considering to purchase. Even if it is only one property over a five-year period, you should still have a plan of action. Don’t forget to take into consideration your budget, appreciation, depreciation, and your profit margin. If you’re unsure about what these numerical values are, you can talk with an expert at Avison Young.

Investing: What You Should and Should Not Do

At this point you might feel closer to taking that big step and purchasing your first property. However, before you do that, there are a few things you should and should not do. By following these tips, you stand a better chance at making a decision you can feel proud of.

Do: Find someone who lives and breathes commercial real estate investing.

Don’t: Focus too much on a “good deal.”

Do: Invest for cash flow.

Don’t: Underestimate your cash flow.

Do: Expect to run into hurdles along the way.

Don’t: Let yourself become preoccupied with obstacles that can be overcome.

Do: Focus on a real estate strategy and niche.

Don’t: Forget that you can consult real estate experts to understand the finite details.

Commercial Real Estate Investments with Avison Young’s Net Lease Group.

When it comes to commercial real estate investments, you can consider it a business. Every single purchase can make a difference, no matter how small the purchase may be, and you should always take it seriously. If you invest the time and money into the real estate market, you can earn some pretty great rewards. Our group specifically caters to those investors who want to buy and sell net lease assets. This means NNN, NN, and N leases. These leases usually create stable cashflow over a long period of time as these leases are usually long term (15-20 year leases) with multiple options. These tenants are also usually national tenants that have great credit. This helps with maintaining leases and creating a desirable resale value.

Avison Young knows what it takes to invest in a property that can turn a profit. Regardless of your experience, knowledge of real estate, or budget, our team of advisors can discuss your dreams and ideas during a consultation. To find out more about real estate investment opportunities, please contact us today

Traci BidingerReal Estate Investing