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Brad Holden, Real Estate Pro in 75035

If you could invest in a commercial property for only $2,500 down and recieve the same appreciation and cash

Asked by Brad Holden, 75035 Sat Jan 5, 2008

flow from the percentage of ownership, would you do it?

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I'd have to look at the deal. What's the cap rate, where's the location, what's the chance for appreciation, what's the chance for cash calls, who's bringing the deal, who's the managing partner and what are they going to charge, what's the size of the deal, etc? Lots more questions to consider.
2 votes Thank Flag Link Sun Jan 6, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Short answer: Sure.

Longer answer: As with any other commercial investment, it'd depend on the cap rate, cash on cash return, etc. And it would also depend on who the other partners were, and who'd be managing the investment. And I'd do the same due dilligence as I would on any other investment.
1 vote Thank Flag Link Sat Jan 5, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Brad,

I guess it all depends on what the risk level is, how solid the partnership agreement or other legal binding contracts are. If you can make a ROI higher than you could w/ anything else that requires that small of an investment..... why not?
1 vote Thank Flag Link Sat Jan 5, 2008
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