by Robert Kantor
If you are seeking wealth preservation and growth through long-term, cash flowing commercial real estate investment, here are 7 characteristics that we look for in a commercial real estate investment.
The basic premise of Headwater Capital involves investing in commercial real estate that is demographically secure for its use and which generates substantial cash flow on a predictable basis, over a long term.
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- The acquisition price must reflect the current intrinsic value of the asset considering its age and its potential to provide essential goods and services to the community in which it is located.
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- The community around the property must be stable and have growth potential with great schools, and be appropriately affluent for the services provided at the property.
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- Additionally, Headwater Capital must associate with professional local real estate professionals as investors and/or managers in every market in which an acquisition is completed.
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- In making an investment decision, Headwater will consider the traffic patterns and the convenience of ingress and exit for customers.
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- It is essential that the property is anchored with essential goods and services (like groceries, drug stores, urgent care, coffee, restaurants, etc.) to insure a constant flow of patrons for the commercial spaces.
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- The physical appearance should be attractive and inviting.
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- And, even if everything else in fine, the property must have potential for future growth and increased income generation to insure the asset keeps up with inflation over any holding period.
To see how we put these criteria to work, see our latest investment opportunity, Barrington Town Center. This investment is projected to provide an average cash flow to our investing partners exceeding 9 percent per year over a period of 10 years, with an IRR between 12-14 percent.
Connect with me on Linkedin, and with Headwater Capital on Linkedin, Twitter and Facebook.
To learn more about the possibility of earning long-term, reliable cash flow with Headwater Capital, contact me at RAKantor@HeadwaterCapital.com.
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