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Commercial real estate investors deal with more and bigger things than the ordinary man. The numbers are bigger. The risk is higher. The hours are longer. With that in mind, the world of commercial real estate investing is not without its perils. Here are some of the mistakes made by commercial real estate investors that have caused huge dents in their business.
Neglecting the state of the local market: Local markets make up half of commercial real estate evaluation. Property comprises the other half up. Without knowing the trends of the local market such as population, income, employment rates, numbers of same commercial structures, community infrastructure, accessibility, and others, investors may find it nearly impossible to hook prospective buyers.
Ignoring the tax and the way it moves: This sounds simple enough to remember, and yet, investors still forget it. Taxes are often updated, and it’s best for investors to keep up and adjust. Some investors find ways to skirt around the rules, which is okay as long as it’s within the bounds of propriety. However, there are times when whether intentionally or unintentionally, investors don’t get to pay the tax. This is one of the biggest mistakes they can make since it can potentially land them behind bars.
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Headquartered in Tampa, Florida, The Welfont Group assists clients in finding, analyzing, financing, purchasing, managing, and selling commercial real estate properties. For more information about the boutique commercial real estate brokerage company, visit this website.