There are many reasons to invest in commercial real estate and it’s not as difficult as you might think.
Increased Yields: This is generally what attracts investors the most. Creating an income stream that generally surpasses the stock market; commercial real estate provides solid earning potential and cash flow stability. Unlike the stock market, real estate is a hard asset of which its intrinsic value is its ability to be leased or exchanged for other items of value.
Diversification: We have all heard this over and over, however, it is key to diversify your investment portfolio. Commercial real estate is a terrific addition and many experts recommend allocating 20%+ of your overall portfolio to real estate. Unlike stocks and bonds you have control over the location, condition, tenants, and the type of commercial assets you acquire (multifamily >4 units, office buildings, industrial buildings, and retail properties.)
Equity Growth: Unlike other investments, commercial real estate provides rental income that covers debt payments. This makes it an excellent long-term investment because as your tenant pays down your note equity is being built up in your asset.
Next read about some key commercial terms that will help you navigate the buying process!
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