Commercial Real Estate Training

Commercial Real Estate Investing Helps Establish Financial Independence

Real estate investing is one of the best ways to build wealth. Unlike other investment vehicles such as stocks, real estate will go up in value consistently over time. With commercial real estate, you will be able to take advantage of several benefits. When looking to invest in commercial properties, investors will be able to take advantage of many things that will help them increase their wealth.

More equity

Compared to residential properties, commercial properties are much higher in value, which naturally leads to more equity. This increased equity provides the needed funds to invest in additional commercial property, enabling you to increase your wealth regularly.

More rental income

With commercial real estate, investors receive funds from tenants who pay to use the available spaces. Because of the size of commercial buildings, you will have more tenants and more sources of income. As a result, you can make money as you build equity.

More tax advantages

As a property owner, you have many deductions, such as property taxes, mortgage interest, and use depreciation. One of the most valuable tax deductions with commercial properties that are not available with residential properties is deprecation, which allows you to reduce taxable income and keep more of your money. With these tax advantages, you will be able to save money and put yourself in a position to build even more wealth.

Contribute to local economic growth

When you own a commercial building, you will be able to provide businesses with a place to run their operations, hire workers, and assemble inventory. Therefore, investing in commercial properties can contribute to economic growth.

Commercial Real Estate Classifications

When investing in commercial real estate, there are many different classes to consider. There isn’t “one right” investing class or “one right” strategy. The key is understanding that different markets will require different real estate investing techniques.

Multifamily: Five or more units in either urban or suburban settings. These include garden apartments, mid-rise apartments, and high-rise apartments.

Office: Dedicated to administrative work needed for businesses. Office buildings are sold by class, with Class A in great condition and the right location, Class B in good condition and a fair location, and Class C in “rehab needed” condition and a poorer location. Office classifications also include several types, such as traditional office space, flex-space, co-working space, and executive suites.

Industrial: Industrial properties vary according to need. Some of the most popular types of industrial properties include warehouse space, heavy manufacturing, and light industrial.

Retail: These are units used for selling wares. They can be in strip malls, shopping malls, or out parcels.

Hotels: Including short stay, long stay, and limited service.

Mixed-Use: A building that has a combination of uses, such as multifamily and retail or retail and office.

Special Purpose: This includes anything not included in the earlier categories, such as amusement parks, hospitals, theatres, and more.