Posted by Bill Taylor on May 09, 2006 at 21:55:47:
John with those cap rates you are pretty much on target but get out of the area with those kind of cap rates and find better ones. In my case the reason to invest in commercial real estate is if you have a lot of equity in other property you can trade that equity without a large tax hit by doing a 1031 exchange. We have been converting those equities to good sound commercial real estate. You can’t just buy anything out ther and call it sound real estate but there is some out there. We have a proeprty manager overseeing our properties and he does a very fine job so I don;t have to. We are also looking to continue with tax shelter so we don’t have to count all the income as earned. I am only 51 so if we turn all of our equities into cash and pay tax there may not be enough left in the event that I last another 30 years, I think the commercial will provide that for us. These are just my reasons and I hope there are others with more ideas that I can use.