Commercial real estate: The Big
Profits
Real estate is often called as the safest investment avenue. In fact,
real estate investments done with proper evaluation of the property
(and its true value), can lead to good profits. This is one reason why
some people pursue real estate investment as their full time job. The
talks of real estate are generally focussed towards residential real
estate; commercial real estate seems to take a back seat. However,
commercial real estate too is a good option for investing in real
estate.
Commercial real estate includes a lot of various kinds of properties.
Most people relate commercial real estate with only office complexes
or factories/ industrial units. However, that is not all of commercial
real estate. There is more to commercial real estate. Health care
centers, retail structures and warehouse are all good examples of
commercial real estate. Even residential properties like apartments
(or any property that consists of more than four residential units)
are considered commercial real estate. In fact, such commercial real
estate is much in demand.
So, is commercial real estate really advantageous? Well, if it were
not profitable I would not have been writing about commercial real
estate at all. So, commercial real estate is profitable for sure. The
only thing with commercial real estate is that recognising the
opportunity is a bit difficult as compared to residential real estate.
But commercial real estate profits can be real big (in fact, much
bigger than you would expect from residential real estate of the same
proportion). You could take up commercial real estate for either
reselling after appreciation or for renting out to, say, retailers.
The commercial real estate development is in fact treated as the first
sign for growth of residential real estate. Once you know of the
possibility of significant commercial growth in the region (either due
to tax breaks or whatever), you should start evaluating the potential
for appreciation in the prices of commercial real estate and then go
for it quickly (as soon as you find a good deal). And you must really
work towards getting a good deal. If you find that commercial real
estate, e.g. land, is available in big chunks which are too expensive
for you to buy, you could look at forming a small investor group (with
your friends) and buy it together (and split the profits later). In
some cases e.g. when a retail boom is expected in a region, you might
find it profitable to buy a property that you can convert into a
warehouse for the purpose of renting to small businesses.
So commercial real estate introduces a whole plethora of investing
opportunities, you just need to grab it.
ABOUT THE AUTHOR
Bob Schwartz, is a Certified Residential
Specialist, CA licensed real estate broker with
www.Brokerforyou.com. Bob
has over 27 years of residential real estate experience, authored a
number of published articles and served as an expert witness for
San Diego lawyers. You can contact
Bob via e-mail at bob@brokerforyou.com or visit his highly popular
San Diego real estate website at:
http://www.brokerforyou.com
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