Real Estate Myth Busters
In the fast-paced world of commercial real estate, myths and misconceptions spread like wildfire.
At Bransco Properties, we’re all about cutting through the clutter and giving our clients the straight facts they need to make smart, strategic decisions.
So, grab your coffee (or hard hat)—it’s time to bust some real estate myths!
Myth #1: “All Real Estate is a Safe Investment”
The Reality: While real estate is often viewed as a reliable investment, that doesn’t mean it's a guaranteed win. Like any investment, it comes with risks—and knowing what those are can make or break your long-term success.
-A poorly located retail center? Could sit vacant for years.
-An aging multifamily property? Might require thousands in deferred maintenance.
-A warehouse in the path of progress? Could become your best performing asset.
What to do instead: Perform due diligence. Understand the asset class. Work with a team (like Bransco Properties!) who can help you evaluate the numbers, the market, and the potential.
Myth #2: “You Need to Be Rich to Invest in Commercial Real Estate”
The Reality: This is one of the biggest myths out there—and it’s just plain false.
Yes, commercial real estate deals can involve large dollar amounts, but that doesn’t mean you need to drop seven figures to get in. Today’s investment landscape offers a variety of entry points:
-Partnerships and Syndication: Pooling funds with others to buy larger assets.
-Seller Financing: Negotiated directly with the seller, reducing traditional loan requirements.
-REITs and Crowdfunding Platforms: Ideal for passive investors starting with smaller amounts.
Myth #3: “Vacancy Means the Property is a Bad Investment”
The Reality: Vacancy doesn’t always mean red flags. In fact, it can signal opportunity.
Example: A partially vacant strip center in a growing suburb could be waiting for a savvy investor to rebrand, upgrade the façade, or attract the right mix of tenants. The upside? You control the value creation.
Value-add properties, especially in transitional neighborhoods or emerging markets, often have the highest potential for ROI—if you know what to look for.
Can the vacancy be reduced with better marketing?
Are rents under market?
Does the building need cosmetic or functional upgrades?
Pro Move: Don’t run from vacancies—evaluate them. Ask: “Is this a problem, or is this potential?”
Myth #4: “Cap Rate is the Only Metric That Matters”
The Reality: Cap rate gets a lot of attention, and for good reason—it’s a helpful quick-look tool. But it’s far from the full picture.
Cap rate tells you what return you'd get if you bought the property with cash, based on current net income. But what about:
Future rent increases?
-Tenant rollover risk?
-Operational inefficiencies?
-Tax implications?
-Your financing terms?
Smart investors consider multiple performance metrics:
-Cash-on-Cash Return
-Internal Rate of Return (IRR)
-Debt Service Coverage Ratio (DSCR)
-Total Return on Equity
Myth #5: “The Best Time to Invest Was Last Year”
The Reality: We’ve all heard it. “I should’ve bought that property in 2019.” “If only I had invested before interest rates rose.” Hindsight is 20/20—but in real estate, timing isn’t everything.
The truth? The best time to invest was yesterday. The second-best time is today—if you’re buying the right deal.
Markets go up, they go down, and smart investors win in both conditions by staying active, informed, and intentional.
In a seller’s market: Lock in long-term leases and ride the appreciation wave.
In a buyer’s market: Score deals, negotiate better terms, and create equity through improvement.
Busted Myths = Better Investments
Whether you’re just dipping your toes into commercial real estate or you’ve already built a portfolio, knowledge is power. And the more myths we bust, the more clarity you gain in your journey as an investor.
At Bransco Properties, we don’t just help clients find properties—we help them build strategies, identify opportunities, and make confident decisions in Michigan’s commercial real estate market and beyond.
Let’s Make Your Next Investment Move a Smart One
Our team is here to be your guide, your partner, and your biggest asset. No fluff. No hype. Just clear advice, smart analysis, and a commitment to helping you win.
Ready to bust some myths and build your portfolio?
Let’s talk strategy. Contact Bransco Properties today.
