Investing in both commercial real estate and residential can be a great way to increase your investing portfolio fast. However, commercial and residential real estate are completely different and it takes a good amount of time to learn the ins and outs of each. While residential real estate might be better for some investors, most investors would be better off investing in commercial real estate. In this article, we will be going over some of the top advantages of investing in commercial real estate.
Advantages Of Commercial Real Estate Over Residential:
1. Income Potential.
The fact is, you are going to have much better overall earning potential by investing in commercial property. Commercial properties are going to have a much better annual return on investment off of the purchase price. This means that you are going to have a much greater income potential with commercial real estate.
2. Limited Hours Of Operation.
When you invest in commercial real estate, you are not going to have to worry about night calls or other problems that could result at any hour as much as you would with residential. Businesses typically go home at night. Therefore, you are only going to have to work when they are working. It is very likely that you will have your own alarm monitoring service that you can use in order to handle anything that happens during the night hours.
3. Public Eye.
Because you are investing in commercial real estate, you do not have to worry as much about people mismanaging and/or mishandling your property. The fact is, they are going to have an image to maintain. Therefore, you will be able to rest easy knowing that they will take care of the property and that they will not abuse it like a residential renter might. This is because commercial property owners and tenants have a mutual interest in maintaining their store and/or property to the best of their abilities.
4. Time Commitment.
When you own a commercial building or property with a few tenants, you are going to have to invest much less time into managing the property than you would residential properties. You are going to be much less likely to deal with all kinds of maintenance issues and other problems that could occur.
As you can see, there are many different benefits that you are going to get when you invest in commercial properties over residential. The fact is, you are going to end up having a much greater income potential when you invest in commercial property. This makes it a much more interesting and appealing investment opportunity because the goal of any investment is to make as much money as possible. Also, you are not going to have to invest as much time into it because you are going to have property renters that have the same vested interest in maintaining your property and keeping it looking as good as possible. This will ultimately help you in the long run as an investor.
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