When it comes to investing, sometimes there seems to be a fine line between speculating and gambling! However, commercial real estate offers a lot of upside for investors who aren’t content with allowing inflation to diminish the value of their cash savings! Ferstl Valuation Services has been offering real estate appraisals in Arkansas since 1967, and we encourage you to contact us for an investment analysis before proceeding with your investment. An investment analysis enables you to make an informed decision based on quality research and analysis so you can “look before you leap” before updating your portfolio of real estate properties.
There are many important factors to consider before proceeding with any investment, and commercial real estate is no different. A professional investment analysis reflects the relationship between the acquisition price and anticipated future benefits of a real estate investment. You can’t afford to trust “hunches” or “educated guesses” about a potential investment’s true value. We’ll provide you with the information you need to determine whether a specific property meets your specific risk and return requirements. Here are just a few of the reasons why an investment analysis is a “must” before proceeding with any commercial real estate purchase:
Accurate property valuation: The value of a commercial property is based on numerous important factors, including monthly mortgage payments and the gross amount of monthly rental income from tenants. You’ll also want to look at the property’s capitalization rate, which enables you to estimate how much you stand to gain from your investment.
Long-term forecasts: Whether you plan on holding the property on a long-term basis or “flipping” it quickly, an investment analysis helps you determine its future resale value and potential for appreciation.
Evaluation of your personal risk level: Commercial property is one of the most profitable investments you can make, but also one of the most risky. If we experience a recession, the demand for office space softens. Rising interest rates also make it more difficult to borrow money, and you can’t always count on finding a well-qualified buyer right away when you attempt to resell the property. An investment analysis helps you determine whether you’d like to proceed with the property investment or consider seeking more return-on-investment-positive alternatives.
For more information about real estate appraisal services in Little Rock or to schedule an investment analysis, contact us online or at 501-375-1439
