How Can Commercial Investments Benefit Your Portfolio?
Residential real estate investors often look to broaden their portfolios, but don’t want to take on a significant amount of risk. One of the most common routes investors take is pursuing commercial real estate investing. When you really dive into the details of commercial investments, you’ll quickly see you not only have many different options, but many of those options are low-risk, low-maintenance and can bring back a high reward. And commercial property lending is much easier than you think. Here are a few different ways commercial investments can benefit your portfolio.
You Have Multiple Investment Options
Investing in commercial real estate can provide somewhat of a safety net during market volatility. Two of the most common options investors pursue are large apartment complexes and commercial offices. The larger the apartment complex is, the better the chances you’ll be able to stay ahead, since you don’t have to rely on every single tenant to remain there. Losing a couple of tenants over the course of several months won’t break the bank, unless your complex only has a couple dozen units.
One of the most popular commercial real estate options investors choose are commercial office spaces. The lease for these offices can be anywhere from 3-15 years in most cases, so there is a significant amount of stability for investors. It’s one of the safest options as well, since most of the time businesses won’t break their lease unless they have a drastic negative turn of events with their company.
Either of these options can add some diversity to your portfolio and provide you with stability during volatile times.
Commercial Investments Are Lower-Risk
An attractive component of commercial real estate investments is many of them are low-risk. This is especially true when you work with an experienced sponsor. There will be some upfront work that needs to be done to complete the deal, but then the work is done in most cases. If you have multiple investments across different industries, then commercial investments can provide you with another hands-off investment option with a solid cash flow.
The Capital Needed Can Be Low
You don’t have to be a millionaire to make a commercial real estate investment. And investment property loans aren’t as difficult as you think to obtain when you utilize the proper resources. The larger amount of capital you put down, the larger return you could potentially get, of course. However, many investors are surprised their options could start at as little as $5,000-$10,000.
Commercial Mortgage Connection believes commercial property owners deserve more. We want to understand your investing goals and make the process of securing investment property loans easy. Our flexible options are tailored to each individual investor and their portfolio. To learn more about how we can help you enter the commercial investing world, contact us today to schedule a consultation with one of our experts.