Why Commercial Real Estate?
Commercial real estate can help you grow your business based on your goals and needs. Commercial real estate can give you higher returns than residential income property, and you have more control over how much a property is worth.
The value of a single-family rental home or even a quadplex is mostly based on the value of other similar homes in the area. You may boost the value of the commercial real estate by providing facilities like washers and dryers in apartments, covered parking, more storage, subdividing the area to attract more tenants, etc.
Commercial real estate can help you reach the next level in your investing career.
What is Commercial Real Estate?
Commercial property is land or buildings used to make money or run a business.
Even a duplex can be considered commercial property, but a duplex, triplex, or quadplex can still be financed with a residential mortgage. An apartment building or office building, on the other hand, usually needs commercial financing.
What are the Benefits of Commercial Real Estate?
- One benefit of commercial real estate is that you have more control over the property’s value than most residential rental properties. You can do this by adding extra features and charging more for them.
- Another benefit is that seller financing may be simpler to get than with residential income properties because the sellers are smarter than the average landlord and know more about the options for seller financing.
- Commercial real estate may be easier to find investors than residential income properties because it can bring in more money.
- Commercial property financing is based more on the property’s cash flow or income than the investor’s credit.
- Most commercial property loans are “non-recourse,” which means that the property, not the investor(s), is used to back up the loan.
- Fewer people invest in commercial real estate than in residential rental properties because commercial real estate usually requires more knowledge and a better way to get money.
- Commercial real estate makes it easier to grow your investment business because the value and returns are higher.
How Can A Real Estate Expert Provide Value When Investing in Commercial Real Estate?
Investing in commercial real estate is best done with the help of a real estate professional for the following reasons:
- Finding commercial properties
- Knowing the local market
- Advising on how the property can be used best
- Bargaining for the best price and terms
- Understand the due diligence process and help make sure it gets done.
- Know qualified people who can help with due diligence, financing, and management.
- Help find possible sources of tenants for the commercial property.
How Can Commercial Real Estate Take Your California Investments to the Next Level?
Investors can increase the value of commercial real estate more than residential rental property because they can add more services and amenities and charge more for those services and amenities.
Investing in commercial real estate also has a lot of other benefits. The gains could be bigger. Because the returns are higher, passive investors may be more interested. Because the returns are higher, it is easier to grow your investing business. Lastly, a real estate agent can help you find commercial properties, do your research, and negotiate the best price and terms.
Want to learn more? Contact us now at 909-821-7958.