Planning for Success - The Commercial Investors Guide

"If you fail to plan, you are planning to fail" Benjamin Franklin


Getting into the Market

The first step in planning for success is deciding what your investment goal is. Are you looking to grow your investment dollars, provide a monthly cash flow or defer taxes on your income?  What is your target return on your investment?

What type of property should you be investing in? How much time do you want to dedicate to managing the investment. Should you hire a management company? Do you borrow money and leverage your investment or pay cash?

The Holding Period

This would seem to be the "easy" part, right? But this is the one that gets overlooked so often. There are all kinds of expenses that come up in owning commercial real estate that are infrequent but costly. Without proper planning, these expenses can take your positive cash flow into the red, fast.

And speaking of cash flows, what are you going to do with those? Don’t forget a strategy for reinvestment of the dividends that your investment pays. For some, they use these as their living wages, for others they diversify in other investment vehicles. And other put these right back into the real estate market. Plan now and that income can work just as hard as you do.

Exiting the Market

This is the step that many investors never address.. and where planning will maximize your investment income. 

Many times market areas change, preferences of tenants change or buildings become functionally obsolescent. Identifying these factors up front and creating a plan to deal with them should be part of your plan.

If you are planning to pass the assets to your children, you need to speak to your attorney and accountant for the best legal ways to make the transfer without causing a tax hardship.

By making sure you have an exit plan, you will ensure you are maximizing value and minimizing tax risks.


Your Commercial Advisor is trained to assit you in developing a sound plan that meets your investment goals, risk tolerances and accounts for the unexpected. Call today for your personal investment plan.