Looking to invest in Memphis commercial real estate? You’ve come to the right place. From conducting market research to finding the right loan, the Jones Aur team has assembled everything you need to learn how to invest in Memphis and succeed.
Research the Market
Doing your due diligence when choosing to invest in Memphis is the first step to success. Be sure to keep up with market trends to protect you from choosing high-risk investments and boost your business’s success in the long term.
As Tennessee’s second-largest city, Memphis is a great place to invest in commercial real estate for several reasons. This city is located in the heart of the country, making it a major transportation hub and tourist destination. The city boasts a low cost of living and conducting business and the city and state offer incentives for businesses moving into the area. Because of these conditions, the Jones Aur team recommends buying either industrial or multifamily properties, as both of these markets are promising prospects for new and seasoned investors alike.
Calculate Potential Success with Metrics
So much of investing comes down to the numbers, and you’ll need to use this set of metrics to predict the success of your Memphis options.
Net Operating Income: Your NOI helps you assess your investment’s profitability after subtracting the expenses required to maintain and operate the property. The Jones Aur team in Memphis is here to help you calculate your NOI using a standard formula that considers your unique expenses.
Internal Rate of Return: Your property’s IRR helps predict your investment return over several years. Essentially, this metric tells you how much cash flow you can expect to receive after purchasing a property. We’ll help you calculate the IRR on your potential Memphis property investment, so you don’t have to.
Capitalization Rate: Similar to the IRR, the “cap rate” is another key metric tool that the team at Jones Aur uses to assess a property’s profitability. By dividing the property’s net operating income by the current market value, you’ll better understand the relative value of a particular investment property compared to similar properties.
Find a Commercial Real Estate Loan
Unless you’re planning on paying in cash, securing financing is one of your most important tasks. Whether you choose to invest in an office, retail, industrial, multifamily, or special-purpose space in Memphis, this process looks slightly different than it would for residential real estate property.
First, you’ll need to decide if you’re applying for loans as an individual or a business entity before moving forward. Then, you’ll apply for one of several potential loans that works best for your unique situation. Potential loan types include a conventional loan, hard money loan, commercial bridge loan, small business administration loan, or conduit loan. Your team at Jones Aur can help you find the loan that’s right for your investment.
Stick with a Team of Experts
Getting on board with a team that knows how to find you the right investment properties in the right locations is essential to your success. Investing in Memphis is all about knowing the right neighborhoods for your needs to maximize your ROI and the Jones Aur team does exactly that. We use our seasoned backgrounds and insider network to create solutions and build value in Memphis, the Mid-South, and beyond to give you the best opportunities available.
Contact Jones Aur Today
Investing in Memphis is one of the best moves you’ll make this year, aside from choosing Jones Aur as your commercial real estate broker. We’ll help you from start to finish, so you can focus on making your business successful. Contact us today to get started!
