Real estate is not only about investing in residential real estate, there are more options that allow you to use your money wisely allowing you to obtain a return that is much higher than expected; One of these options is the commercial real estate investment that, as its name indicates, is that which is generally constituted by commercial properties, such as: retail buildings, office buildings, warehouses, industrial buildings, apartments and mixed buildings. Which mix between stores, offices and apartments.
This type of investment brings a lot of profitability because the level of profit is higher because you own a property, it is rented according to the value of each square meter and you also earn money that is usually in cash, yes, one of The possible disadvantages are that in order to obtain all these benefits they must start with a large previous investment which will yield after a certain time and many do not have the means to do so. Beyond that, here are some interesting facts that can help you better manage your commercial investments:
Time: Because there is a greater number of tenants than in a residential property, time management should always be considered when doing a business of this type. You can not leave your tenants in the background, so establishing priorities or using someone who is in charge of managing them is important.
If you made a correct analysis of the situation and developed a scheme that allowed you to estimate the subsequent benefits, your earnings will be very good because the lease rates are generally favorable and how favorable they are will depend on the type of lease you make with its tenants.
If you do your job well, organizing your time and getting good deals with your tenants, business relationships will grow, bringing more opportunities and connections for possible future business.
You should consider that the commercial and residential evaluation may have a certain similarity, but it is not the same, each one has its parameters, so, you must study how is the evolution and what is a good evaluation. The square meters covered by the property, its location, type of rental used or the comparable ones are very important when evaluating a possible offer.
Always try to learn from those who know more and in turn, use the experience you have forged with the time you have within real estate. A lot of this is about the smell you have and how much information you have of the business, so always have a plan that clarifies what are the steps you will follow and how much you are willing to spend and earn.
Because there is a greater number of people on your property, the increased risks such as accidents or damages are increasing. Having this in mind will always give you ample room for movement at the time of any emergency.
Dealing with this type of investment depends on many variables that can not go unnoticed, have a line to follow, know the area in which you develop and a contingency plan will always allow you to obtain better business. It is known that the higher the level of benefits, the greater the demand, so you must prepare adequately to be able to give the best possible service and, in turn, you can see how the diversity and security of your investment is increasing. If you are interested, contact us!
“Real estate can not be lost, stolen, or taken away.” Purchased with common sense, paid in full and administered with reasonable care, it is the safest investment in the world. ”
Franklin D. Roosevelt.
Politician and American lawyer.