Anyone who has invested in commercial real estate properties knows the risk/reward factors associated with it. One of the main hurdles investors have is finding financing for commercial real estate. Be comforted in the fact that there are lenders who will provide you with financing with good terms even if you don’t have the best credit. Don’t let that aspect stop you!
If you’re considering investing in real estate in the near future, just know there are also some fantastic features. Here are some of the main benefits of investing in commercial real estate.
1. Great Appreciation in Value
Any time you make an investment, you want to get the largest return possible on your money. Commercial real estate investments generally provide one of the best returns when compared to other types. One of the unique aspects is a property owner can play a large role in the increased appreciation of the property. Investing in improvements to make it more desirable and usable could provide some big rewards in the future.
2. Protects Against Inflation
When it comes to commercial real estate, it’s one of the few assets that will rise along with inflation. This is especially true when you own a property with multiple tenants and a high ratio of replacement and labor costs. Experts have indicated commercial real estate investments have the highest correlation when it comes to inflation in comparison to other asset types.
3. Secure Investment
When you’re securing commercial loans for real estate, you need to understand you’re investing not only in the structure, but the actual land itself, as well. For this reason, commercial real estate investors need to choose their investments wisely and consider the location, quality and other factors to maximize the asset growth. A commercial real estate investment won’t fluctuate as much as the stock market, so you can feel more secure with your investment.
4. Provides Regular Income Stream and Spendable Cash
The uniqueness of commercial real estate investing is you will almost always have a regular stream of income you can use right away. Tenants have to pay rent monthly, and rent is usually much more than the dividends you will get anywhere else. When you’re looking into financing for commercial real estate, consider the constant income stream you’ll get in return to pay back those loans.
At Commercial Mortgage Connection, we want commercial real estate investors to take full advantage of the benefits commercial real estate investing has to offer. Contact us to see how we can best serve you.