Getting Into the Business: Reasons for Investing in Commercial Real Estate

    Just like in any business, real estate is also a career wherein you can choose to specialize. A lot of people think that real estate is only into selling houses; however, there is more to it than what ordinary folks are expecting. For instance, the bulk of this enterprise caters to commercial properties. If you want to make it big and be more financially free, then aiming for this level of business is the way to go; selling and renting residential units can only take you as far as letting you have a comfortable life for your family, but not for the future of theirs. You might need to risk big, but the return could easily allow you to earn seven figures easily. If you are not convince yet, then read on and find out why investing in a commercial real estate is the best venture that you could possibly endeavor.

    Reason # 1: More possibilities up for grab.

    Commercial real estate is highly diversified. This means that you can choose from offices, mobile home parks, or apartments. So in just one investment, you will be managing and earning income from a lot of units ranging from twenty to more than a hundred depending on the amount of your investment. As you do this, you will have more free time in your hands. You can also justify hiring a property manager under you to handle your affairs because many estates are now in your hand. In this way, you can have better management of your businesses because someone can be focused on handling your clients. In addition, expanding your business will allow you to get discounts from outside contractors because you will be outsourcing more people.

    Reason # 2: Flexibility in financing.

    When you are investing in commercial estates, more money is involved. However, this does not mean that you have to empty your bank account. In fact, it is quite easier to get commercial loans than residential ones. Another that will help make your financing sweat-free and not too risky is by persuading others to invest in your business through private money partnership. Open yourself up to the option of combining both bank financing and private money partnership. For instance, you can loan seventy percent of the money needed for the investment through the bank and raise the rest. Through this, you won’t even have to shell out money from your pocket.

    Reason # 3: Less risk, more income.

    Unlike in residential homes, commercial assets have more value if they are deemed as a property that needs work. So in a sense, even if the place that you have invested on is not up and running yet, you can already earn from it by leveraging your net operating income. When your operating net income is high enough, more investors will knock at your door and your asset will have a higher valuation if you do decide to sell it.