Have you recently come into some money? Perhaps inherited a hefty amount from your great- great grandmother?
If so, now might be the perfect time to consider investing in some commercial real estate as there are many benefits in doing so. In fact, commercial real estate is something that could pay you back time and time again, according to various experts.
What Is a Commercial Real Estate?
Commercial properties are buildings that are leased to clients. A commercial property might be a retail or office building, warehouse, apartment complex, or mixed-use building. This type of real estate gives you an opportunity to make money in various forms.
When you own commercial real estate, you add variety and plenty of options into the mix. From an apartment building to an office space, you are sure to relish the benefits of owning commercial real estate properties.
For instance, you can purchase the property, let it build equity and later sell it for a profit down the road. There is also the option of renting the property for a continuous monthly income from tenants.
Other Benefits to Owning Commercial Real Estate Properties
If you want to build an investment portfolio, commercial real estate might be a good place for you to begin as it could be all encompassing for your current business endeavors.
For instance, if you have your own business, you can buy the property for running your business operation. When you purchase a building with multiple floors or office spaces, you could also rent out those additional spaces and reap the rewards.
Perhaps one of the most attractive aspects of owning a commercial property is the income potential. Commercial properties have an annual return percentage rate often higher than a single-family annual return rate, experts suggest.
Another benefit of investing in commercial real estate is longer leases for most buildings. A residential tenant typically has a one-year lease, but a commercial tenant’s lease could run 10 years or longer.
Commercial property owners also benefit from the professional relationships they develop with the business owners who lease their space. These tenants have a vested interest in maintaining and improving the property, so the investment value increases.
To start building your real estate portfolio experts suggest following these tips:
- Keep Abreast of All Your Finances
- Get a Pre-approval from Your Mortgage or Bank Lender
- Be Sure About Your Goals
- Know the Risks That You Can Undertake
- Start Budgeting Time and Finances
- Create an Investment Plan
- Follow the Latest Trends in Commercial Real Estate Properties
- Keep Patient and Stay Focused on your Goals, Finding Properties, etc.
- Remind Yourself that Buying Commercial Real Estate is a Rational Decision Not an Emotional One.
When you are finally ready to invest in said property (properties), regardless of where you reside, it’s easy to find commercial real estate near you. Plenty of properties exist, and you can hire a commercial real estate expert to suggest listings and availabilities. Or, you can do your own research and start enquiring about properties that interest you by contacting the lister/seller/broker directly.
It’s important to keep your options open and take the time to consider any potential opportunity that comes along. While the perfect commercial property may not always be easy to find, and might take some extra time, it is one of the best investments you can make for your investment portfolio and financial security.