Building wealth takes time.
Do you consider yourself to be a seasoned veteran in residential real estate? If so, consider adding commercial real estate to increase your stream of revenue. Remember all streams will make their way to the river bank – your account.
Commercial real estate requires a larger investment than single family homes. Considering the expanded space, and usually central locations, the ROI will also be much more.
According to several widely recognized definitions, commercial real estate is comprised of buildings outside single family homes. This could also be a residential building, but one that houses more than one unit.
However, before getting started on such a venture, be sure to conduct in-depth research to lower the risk of loss. A popular personal finance book, The Richest Man in Babylon, advised readers to invest in worthy ventures where knowledge isn’t lacking.
Jason Hartman advises that you branch out, but not before testing the waters with research and feedback.
Here Are 5 Factors to Consider When Investing In Commercial Real Estate:
1. Location – Will the location be beneficial to prospective businesses?
2. Space – How many units divide the space, and how much profit will you be able to add to your bottom line?
3. Features – Is the building conducive to new additions that will improve its appeal?
4. Cost of Living – Will rental fees be higher or lower in this area?
5. City Codes – What fees or stipulations will owners need to adhere to?
These tips are sound advice. For instance, would you invest in a commercial property that’s miles away from the target market? Inaccessible buildings will more likely lead to loss.
For our readers who are new to this market, it’s wise to purchase buildings in areas that are centrally located for retailers, lodging, storing, even parking.
If renting space is the road to creating wealth, count commercial real estate as an accelerator of this goal. It’s a large space divided – to multiply profits.
Additionally, there are specific features that can help to market properties. These include solar energy where applicable, free Wi-Fi, and other simple additions that are seen as benefits to lessees. Ultimately, investing in these small utilities allows owners to market the property at a higher price point.
Commercial real estate is sound investment and a great source for future income. For beginners who are not yet ready for commercial investments, Jason Hartman is a wealth advisor, whose tips will help readers increase the speed to sustainable riches. (Top image: Flickr | Earls37a)
The Commercial Investing Center Team
