The real estate industry continues to have a major influence on our economy, so it does not come as a big surprise to learn that Americans are consistently interested in investing in real estate. When thinking about investing, some people may find that they want to invest in commercial real estate, as opposed to residential real estate. For those who find that they would rather invest in commercial real estate have a few options to choose from.
Because commercial real estate is considered a property that has the intention of creating a profit, many people decide to dip into investing through acquiring a commercial property and managing it. Examples of commercial properties include businesses, restaurants, multi-family apartments, and retail stores. Because of the labor involved in moving, most companies that sign a lease will have intentions to stay in the building long-term. As a result of this, it is important to do research and think about it before making the leap into commercial real estate investing.
As the owner and property manager, you would be responsible for managing the tenants and taking care of the building itself. Responsibilities could include updating the building so it remains up to code, taking monthly payments from each tenant in the building, and acting as the point of contact for anything regarding the building. Unlike residential real estate investing, which may see shorter leases with tenants, commercial real estate will likely include several long-term commitments from companies.
While this approach can be long and difficult in the beginning, it has been known to provide some of the most stable income through commercial real estate. Before jumping in, make sure to do an abundance of research, and talk to someone who current invests in commercial real estate to ensure that you are making the best, most informed decision possible. If successful, commercial real estate investing can be a great way to earn more income through the real estate industry.
About The Author
Jack Nourafshan is a distinguished real estate development professional and entrepreneur in Los Angeles, California. He is the President of Reliable Properties, a real estate acquisition, development and management company in the Los Angeles area. Jack has over 30 years of professional experience that has made him known as a leader in the industry. Jack Nourafshan started a blog on entrepreneurship to share his insight and experiences for aspiring entrepreneurs.