Commercial Real Estate
Transcript: Pros: Income potential- Commercial real estate properties generally have a much higher annual return off of the purchase price, which is about 6-12 percent, depending on the area. The percentage for single home properties runs between 1-4 percent (at best). Triple net leases- triple net leases means that as a property owner you do not have to pay any expenses on the property, including real estate taxes (as apposed to residential real estate). Property value increase- as time goes on, the value of the property that you own will increase. On just one single transaction, it may be possible to make well over a million dollars. In fact, some real estate owners will charge enough rent to cover the expense of operating the property, then maybe a decade later, they will sell it and collect the real revenue. What is Commercial Real Estate? Why consider commercial real estate? Whether you decide to invest in residential, commercial, or industrial, it requires a generous amount of money to start the process. When investing in commercial real estate, knowing the financial, legal, and regulatory aspects is key to becoming the owner of any property. Not only do they gain receive their revenue through appreciation, but they also collect revenue via rent that is collected from the tenants. REITS- Real Estate Investment Trusts This is for the investors who don't necessarily want to go through the hassle of knowing the legal, financial, and regulatory aspects of real estate can gain direct exposure from the REITS. Conclusion Commercial Real Estate Tenant turnover- when you lose a commercial tenant, you must find a new one and may even discover that the property may need a few refurbishments in order for someone else to move in. Despite the advantages, tenant turnover is one of the greatest risks. Financing a commercial property- commercial real estate properties are not cheap, usually more expensive than residential properties. Even though larger properties can produce more income, getting that money from a bank takes a lot of experience. Commercial property investments also require a lot of ground work. . A number of factors can affect the value of a commercial property. Having a solid exit strategy is something that is very important. These are some of the reasons why investors start out with residential real estate rather than commercial investing. Investing in Commercial Real Estate Short Film: 3 main reasons why you should invest in commercial real estate Commercial real estate is any type of non-residential property. It usually consists of the following: Office buildings, malls, stores,industrial parks, strip center,high rise apartments, etc. While there are many different types of real estate careers, commercial,industrial,and residential real estate are the three major types. Out of those three types of real estate, commercial real estate tends to be the most popular, and also collects a nice amount of revenue. Businesses that are interested in leasing their space through commercial real estate are quoted a price in dollars per square foot through the leasing agreement. Cons
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