Investing in Commercial Real Estate

7 Benefits of Investing in 

Commercial Real Estate

  For the longest time, Commercial Real Estate (or CRE) investing has been accessible only to more seasoned investors—those who have larger portfolios. Beginner investors, though, would find this particular market difficult to crack...but that was before. 

Today, thanks to the internet and online marketplaces, anyone can be an investor in real estate, even in CRE. In this article, we are going to learn what CRE investment means and its benefits. Let’s get started.

What Is CRE?

So, what is Commercial Real Estate Investing anyway? This is the procurement and management of commercial properties. These structures include (but are not limited to) retail buildings, office spaces, warehouses, and even apartments. 

The bigger question is why you should put your money there in the first place. Don’t worry. You’ll find the different benefits of investing in commercial real estate below.

The Benefits of CRE Investment

1. The Profit 

Of course, the first reason why anyone would want to invest in anything is the promise of profit, and for CRE, there’s actually a lot of it. You can get your ROI faster due to the influx of rental income. And since these are businesses we are talking about, you can significantly raise the rent compared to a residential structure. 

We also suggest adding amenities to the property to further boost your ROI. You can get these last-moment renovations done by getting a direct deposit payday loan. You won’t even have to leave your house to get your funds. They are quick and convenient.

2. Less Risk

Another reason why we love investing in CRE is that it is less volatile. You can secure long-term lease contracts from clients for as long as 3-5 years, sometimes even longer than that. By doing so, you are already ensuring your profit for the next half a decade or so, regardless of what economic swings the future might bring.

3. Tax Incentives

Maintaining a commercial property is a hard and sometimes expensive task. The Internal Revenue Service recognizes this so that’s why they offer tax incentives to its owners especially on expenses related to upkeep and maintenance. 

4. Conscientious Clients

Speaking of upkeep and maintenance, you will be pleased to learn that these chores are significantly easier compared to residential properties for two reasons. First, your clients are business owners as well so you can expect more professionalism. Second, since most of them are establishments that offer products and services, they’ll be concerned about maintaining their image as well and will surely try hard to keep the premises as clean and well-kept as possible.

5. Realistic Responsibilities

As property investors ourselves, one of the things we absolutely hate is emergency calls in the wee hours of the morning. Those who have invested in residential properties are all too familiar with these calls as well. 

You’ll be pleased to know that you will rarely experience this with commercial establishments since they have set operation hours. They will also be gone most of the night. To further make sure that this doesn’t happen, we suggest that you beef up your property’s security features and insurance. In this way, you will be able to sleep every night without worries.

6. Less Competition

Another thing that we don’t appreciate in residential property investment is the fact that it has a lot of competition! Due to their bigger structures, expect your competitors to be less in CRE. What’s more, is that CRE offers a great variety of different establishments. Think of them as niches. The more specific your niche is fewer competition and more clients you’ll have.

7. Increased Value Over Time

Finally, one of the secrets of success in real estate is making sure that your property appreciates its value over time. That can be difficult to do with residences, especially if you don’t have much space to work with.

CRES, though, well they’re another thing entirely. There’ll always be a new amenity that you can add or a feature that you can install. Plus, if you have secured a prime location where tenants will thrive, then other investors will surely fight over your property should you decide to sell it in the future.

Investing in Commercial Real Estate is a huge undertaking, true, but it also offers a lot of benefits. Not only does it have a faster ROI rate, but it also has fewer risks. The best thing about it, though, is that it’s fairly easy to triple its value with just a few tweaks. We welcome you to the wonderful world of real estate investment and bid you good luck!

As a current resident in Northern Colorado, I am fully aware of the current market trends and what it takes to get a great deal on a listing or get top dollar for your current home. When it comes to getting the job done right, you can count on me.

I have a lot of connections within the Northern Colorado area. Please don’t hesitate to call and ask me any questions you might have. This process is all about you and your needs. Real Estate is a big investment and I understand that. One thing you will get with me is a personal relationship, In the end, that goes a long way.
 

Northern Colorado is a great place to live! For more information, please give me a ring or email me today. I would love the opportunity to earn your business and partner with you in regards to your Real Estate needs.

LOOKING TO BUY??

If you are looking to purchase, I can save you a lot of money, as much as 10% on the purchase and finance of your home. 

Contact me today to learn about ALL of my strategies to get you the BEST price for your home in the shortest possible time! 

 SOURCE: REALTY TIMES // WRITTEN BY JIM HUGHES