Real Property, Real Returns
“Generally the income the property produces needs to be 1 1/4 times the debt service,” Grizzle says. Financing can be difficult to obtain these days, but private investor groups are a common option. “Basically you call everybody you know and ask if they know anyone who has money to invest.”
When seeking out potential properties, research local market dynamics—the commercial real estate saw is, “Retail follows rooftops.”
Shari B. Olefson, author of "Foreclosure Nation" and an attorney with Florida-based law firm Fowler White Boggs, suggests strip shopping centers as an investment.
Though retailers are not doing well currently, grocery stores, discount stories and drugstores are.
“Look for a local strip venture that you’re familiar with and has local businesses that people use and need,” she says. Also be aware that they need to be renovated every five to ten years.
But no matter what you’re considering, don’t be afraid to walk—for any reason.
“The best investment decisions are usually the properties that you turn away,” Huettner says. “There will always be other great deals.”
- Slideshow: Million-Dollar Home Price Reductions
(Editor's note: This story has been updated since its original publish date in September.)