What is commercial real estate?
Commercial real estate or property refer to permanent building such as industrial buildings, warehouse, apartment building or office building that is constructed for the sole aim of generating profit in form of rent.
Investing in real estate simply means, putting your money into the real estate business; funding real estate with money from your pocket hoping for profits in the near. This money can be your personal savings, a bank loan or family and friends contribution.
Investing in the real estate business can be a tricky matter if you do not know the ups and downs of the business, but is it worth to invest in real estate? To help prove that it is a wise and worthy choice to invest in real estate below are a few major reasons that help explain the business.
Why one should consider investing in commercial real estate.
v One of the major reasons people get to invest in real estate is the fact that the business guarantee income. Real estate is income potential, ones the projects are completed and the building is ready for occupancy one is guaranteed to return h/her previous capital and also make some profit.
v Another major reason for investing in real estate is the fact that these properties are long-term investments. A fully constructed building can last for years and still continue generating income without any problems
v The third and the final reason in our list is- limited hours of operation. Monitoring your projects is something that only when workers are on site and working, in other words, it happens during the day. The rest of the night is yours to spend the way you want. After the project is completed you will no longer need to monitor you proper since it will be occupied by the tenants.
Great article… I was wondering is it harder to find larger commercial properties with the same cap rate compared to smaller multi-family homes in roughly the same type of area?
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