There are many ways to invest in real estate including buying rental properties, flipping houses, buying real estate stocks, and putting money into real estate investment trusts (REITs.) But the bigger and potentially more financially attractive options are in commercial real estate.
Why Invest in Commercial Real Estate?
The biggest reason is that commercial real estate investing offers high-income potential. It also offers significant tax benefits. Commercial real estate is less competitive than the current highly charged residential real estate market, and there are many commercial properties available for investment. Those properties offer less turnover than residential properties and more help is available to manage, maintain, and improve them. Plus, there are fewer problematic tenants. Commercial real estate is a proven investment category.
5 Best Commercial Real Estate Investments
Consider these 5 best commercial real estate investments:
Apartment buildings. Apartments ranging from five or more units to multi-story apartment complexes offer excellent opportunities to achieve a high return and excellent cash flow.
This category is attractive because there are many properties of this type and the tenants pay rent plus the costs of all maintenance and repairs, property insurance, and real estate taxes.
Industrial locations. This has been one of the highest-performing segments for several years in terms of tenant demand and financial returns.
Retail centers. There are many thousands of retail locations in every large city, and like offices and industrial properties, they are rented on a long-term basis and tenants pay for the “extra costs.”
Hotels and resorts. This category offers more challenges than the foregoing, but if you can invest wisely and then engage experienced property management services, you can succeed here.
Tips to Successfully Invest in Commercial Real Estate
Carefully choose your investment market.
Look for great value and buy low.
Know all your costs upfront.
Seek Expert Funding Assistance
Contact Rushview Commercial Funding based in Pinckney, MI for a staggering variety of commercial finance options for all your commercial real estate financing and business needs. You’ll love our customer hospitality.