Do you feel the market is still a safe investment?

Not sure if you offer advice…….? But I would like to ask: I would like to buy my first piece of commercial real estate. It is an office/warehouse unit in … I would be extremely leveraged to make this work.
My question is: Do you feel the market is still a safe investment? The unit is listed for $1.1 and 2100sq 600 office and 1500 warehouse. Would a purchase like this continue to increase in value or is there a chance to lose $100,000? I am just scared. I do not want to let my wife down.  Thank you for your time and consideration.

Investor Asked on April 18, 2021 in Real Estate.
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1 Answer(s)

First. Ozbuzz is not about advice. We are just chatting, and I may or may not share my opinion on the world and things. Advice you need to take from your financial officers, bankers, realtors, and lawyers (see disclaimer below).
Also, I like commercial and industrial real estate. Rents cannot be frozen. I also like cashflow real estate best. But this kind of question is impossible to answer.

  • You never buy the market. You buy a specific property in a  specific area for a specific purpose.
  • Warehouses maybe a good investment, but it may not have the 6-foot ramp (for delivery) it requires (in your area), maybe in a hard to get to place in the complex.
  • You seem to want to put down $100,000 on a $1.1 million investment – hard to finance that scenario,
  • You do not say what rental income, how long the tenant’s leases etc., etc. Is it a AAA tenant etc. Impossible question.

DO: have your realtor analyze all sales in the area, look at every listing, analyze income and expenses and see a real estate-oriented lawyer. If you worry abut your wife…involve her!

Guru Answered on April 18, 2021.
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