Commercial income properties, when invested in properly, can be some of the greatest "pain free" profits you'll ever experience
Commercial income properties, when invested in properly, can be some of the greatest "pain free" profits you'll ever experience.
Who are they for:
Professionals that just want to put some of their money into a real estate investment, and not have to think about that investment every day, similar to investment in a blue chip stock;
Investors that have had a successful smaller investment strategy, and now must move up as the residential divisions of money lenders will no longer finance additional smaller properties (usually 6-8 is the max);
The business owner; put your company in one unit, and lease out the remainder; and
Our more established clients, with rock solid real estate investment portfolios.
Pros
Commercial properties are typically long term investments owing to their typical stability (at least the ones we’ll sell you) - 10, 15 and even 25 years is not uncommon;
Tenants tend to stay for years upon years, as opposed to 1-2 years for residential;
Big jumps in property value each time a lease agreement increases the price per square foot (usually built into long term lease agreements);
Cons
Like all investments though, commercial property is not without its risks:
Commercial properties generally need a bigger initial investment than residential properties, and
One vacancy – if a larger tenant – can be hard to replace, and losses can mount in the interim.
