Investor Articles

Your Source for Commercial Real Estate Investing in Houston

PROFESSIONAL STRATEGIES, MARKET ANALYTICS, INSIGHTS

For commercial real estate investors in Texas interested in superior quality returns, lower risk, and hard assets, then making an investment in commercial real estate may be a great option. Lumicre Group’s expert brokers, property managers, and advisers can help you identify, evaluate, and maximize value of assets. Regardless if it is an office building, medical building, retail center, warehouse, or single-user asset, we can help.
By working together, we will help compare risk, return, and long-term structures. As a result, this will minimize exposure and create desired outcomes. In brief, we can help you from the very beginning. Not only can we put together an asset strategy and identify potential building investments, but we can also make the purchase and manage the day-to-day operations for maximum return.
On top of that, our team of commercial property management experts provides our clients with the unique benefit of having an in-house team of compliance, technical and engineering professionals at their disposal. What’s more, Lumicre enables our client facilities to realize their unmet potential while reducing or eliminating tenant turnover.

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Important Things to Know When Investing

Avoiding Expensive Mistakes

Commercial real estate investing in Houston is rewarding, but there are a few things you should be sure to remember. If you’ve never invested in commercial real estate before, you might be tempted to try it alone. Without previous experience, this is not the best idea. Doing it alone means you do everything alone – purchasing, owning, and operating assets. In the end, doing it alone could be an expensive mistake.
More than a few investors have failed at commercial real estate because they didn’t do their due diligence. Even if a property looks great (either in person or on paper), you need detailed, verified information (like CPA-audited financial reports and tax returns). In other words, failing to do your due diligence before a purchase could create a more expensive investment than you bargained for.
Moreover, once you purchase a property, you need contingency plans. Once you own the property, you and only you must take responsibility for it. Both the returns and the rewards are yours, but so are the headaches. Be sure to brainstorm a few worst-case scenarios and be prepared by having a plan as well as money saved for ‘rainy days.’

Failing to do your due diligence before a purchase could create a more expensive investment than you bargained for."

5 Steps to Commercial Real Estate Investing

Investing in office buildings

On the whole, we provide you complete services to walk you through every step of the commercial real estate investing lifecycle. Furthermore, our trusted brokers, managers, and expert investment consultants can help with each of the 5 steps to successful commercial real estate investing.

Lumicre Keeps You Informed

Lumicre agents are the Central Texas commercial real estate experts. So we know the ins and outs of the industry. In general, you’ll find us in the heart of the Houston commercial real estate investment scene. Consequently, we’re always in the know and up-to-date on Houston commercial real estate. When you work with our team of expert professionals us, we pass our knowledge on to you so you can make the best possible investment decisions. Without a doubt, we have the knowledge and insights to advise you on a wide range of issues, such as:

The Texas Real Estate Commission (TREC) oversees and regulates the Texas commercial real estate industry. To remain in good standing, every firm must stay on top of the latest commercial real estate legal updates. For example, as a TREC Corporate Broker, Lumicre Group (registered as Lumicre LLC, License #9013770), we’re always in the loop.

On top of that, TREC creates and enforces commercial real estate regulations. TREC’s regulations cover Professional Ethics and Conduct, Practice and Procedure, General Administration, and General Provisions. Specifically, tyhese regulations address issues such as broker integrity and competency, adjudicative proceedings, certain contract disputes, issues relating to licensure requirements, and more. As we learn of news, we pass it on to you and keep you updated on legal issues and TREC regulations affecting your investments and assets. 

Since we are also commercial real estate investment brokers, we stay on top tax code changes. This is partly to keep clients like you informed of things you need to know. Moreover, as Houston commercial real estate investment owner, you should also stay informed about code changes and tax laws .

Following 2017’s tax code changes (known as The Tax Cuts and Jobs Act or TCJA), the rules changed. For example, there are modifications to AMT (alternative minimum tax), carried interest, depreciation, and the corporate tax rate. Because these tax code changes often have a direct impact on your investments, we do our best to keep you up to date on changes that affect your assets.

As a real estate investor, you have to know the status of your investments – your cash flow, your liabilities, and your expenses. On top of that, you need good accounting team selection practices. When you follow accounting ‘best practices,’ you can investors can increase your assets’ efficiency and streamline operations. For more information, contact your CPA. 

On the other hand, poor accounting practices might make it harder and more time-consuming to manage your assets. Not only that, but not tracking your real estate investment finances might even cost you more money in the long run. In brief, Lumicre’s experts offer advice on accounting best practices for commercial real estate investment in Houston TX and other areas. However, your accountant is the best source concerning the technical aspects of your investments. 

Without a doubt, Texas is what we know best. Because we know Houston, Dallas-Ft Worth, San Antonio, and the surrounding suburban markets are our areas of expertise, we can certainly advise you on market trends. For instance, if you want to know where the most affordable Class A office space is in Houston, we can tell you. Or if you want to know the best areas are for purchasing land in Dallas, we can help. Not only that, but let you know where the real growth is happening and could be happening soon! On top of that, we can tell you the hot areas, the declining areas, and the places to get the most for your investment dollars.

Commercial real estate investing in Houston is rewarding, but there are a few things you should be sure to remember. If you’ve never invested in commercial real estate before, you might be tempted to try it alone. Without previous experience, this is not the best idea. Doing it alone means you do everything alone – purchasing, owning, and operating assets. In the end, doing it alone could be an expensive mistake.

More than a few investors have failed at commercial real estate because they didn’t do their due diligence. Even if a property looks great (either in person or on paper), you need detailed, verified information (like CPA-audited financial reports and tax returns). In other words, failing to do your due diligence before a purchase could create a more expensive investment than you bargained for.

Moreover, once you purchase a property, you need contingency plans. Once you own the property, you and only you must take responsibility for it. Both the returns and the rewards are yours, but so are the headaches. Be sure to brainstorm a few worst-case scenarios and be prepared by having a plan as well as money saved for ‘rainy days.’

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