May 2022 | Sands Investment Group

Are you interested in investing in commercial real estate? Investing can be crucial to an individual’s financial goals by offering financial security now and in the future. Investing can also allow you to increase your wealth over time as the value of the product increases. With the help of an advisor, you can begin building upon your real estate portfolio. Commercial real estate can offer a passive income with a premium return.

Owning real estate assets may also allow for resale potential if the situation arises. If you are starting your commercial real estate investment journey, Sands Investment Group has the resources to help you confidently make investment decisions.

What is Commercial Real Estate?

Commercial real estate is different from its counterpart in residential real estate. Commercial real estate, or commercial property, is space used to conduct business, whereas residential real estate is used for living purposes. The commercial real estate industry is intended to generate a profit whether it be from capital gains or rental income.

To invest in commercial real estate, an investment advisor can give you an overview of each category’s performance, supply, and demand. Then, you can choose what type of commercial real estate works best for you.

Types of Commercial Real Estate:

Commercial real estate can be placed in different categories based on the type of business residing in the space. You may also consider what the purpose of the property is when categorizing. These categories include multifamily, office, retail, industrial, hospitality, and special use.

At Sands Investment Group, we specialize in the following commercial real estate product types:

Automotive
Convenience Store
Dollar Store
Drugstore
Early Education
Industrial
Medical
Office
Owner-User
Restaurant
Retail / Big Box
Self Storage
Shopping Centers

Is it Sensible For Me to Invest in Commercial Real Estate?

Many people think of investments as stocks, bonds, mutual funds, or ETFs. However, investments can also be in commercial real estate. There are numerous types of investments you can capitalize on in the realm of commercial real estate, and ultimately diversification is the key to managing your investment risk. However, successful acquisitions can vary due to multiple factors such as the economy and demographics.

On the other hand, commercial real estate has proved to be a reliable investment during many market changes. To be successful with this choice of investment, you must set goals and decide what a commercial real estate investment could provide.

What Type of Investor Are You?

Planning for your financial future entails deciding what the different choices will look like. During this time, you must analyze prior financial statements and determine what its current financial performance has the capacity to obtain. Then, when making investment decisions, you can take the time to evaluate time, risk, and value. This provides confidence in knowing that they will fit into your goals and future plans. Factors such as age, objectives, and tolerance to risk can be essential to what type of investor you are.

After you determine the type of investor you are, it can help clarify how and why you should invest. Even if you have solid investments in place, you may find it wise to continue building your portfolio to meet financial goals. No two investment portfolios are identical. Investors can choose what options are best suited to their situation.

Pros and Cons of Commercial Real Estate:

✓ Provide solid and predictable returns on investment over time.

X If not researched, potential risks of the market situation, such as oversupply.

✓ Provide a tangible asset.

X Can miss the property’s history of sales if not enough research is performed.

✓ Builds equity.

X Market cycles are constantly changing and do not last.

✓ Tax benefits from owning commercial real estate.

X Requires a commitment of time to upkeep.

✓ Commercial real estate assets have leverage.

X Maintenance costs may require professional help.

✓ Provide cash flow and more income.

X Requires a more significant initial investment.

Interested in Learning More About This Investment?

If you are interested in investing in commercial real estate, get in touch with a Sands Investment Group advisor to start your journey. Check out our current listings to see which commercial real estate investment would fit your needs. The opportunity you’ve been looking for might be one click away. To learn more, get in touch with an expert today by calling 844.4.SIG.NNN or sending us an email at info@SIGnnn.com.

Reasons To Invest:

With summer just around the corner, the car wash industry will be in high demand. According to onedesk, 66% of car owners who live in the U.S. will get their vehicle washed anywhere from one to two times every month. Car owners have decreased their use of at-home washes and have rather utilized car washing facilities.

While there are factors that dictate your income such as location and size, you will be investing in a market that is highly demanded by consumers. Location of your potential car wash is an important factor in determining the pros and cons of a car wash ownership. Different types of car washes will also require different finances such as down payments and space. Investing in the car wash industry is appropriate when it meets your goals, but not if you would be uncomfortable with its upkeep and par value.

While there are many factors to consider in your purchasing decisions, here at some potential outcomes when a car wash is run correctly:

Increase Your Income

Owning a car wash gives you an increased revenue as there is a high volume of customers. According to Hedges & Company, 2022 is estimated to have 289.5 million registered cars in the United States. 20,000 cars washed in one year can bring you an average revenue of $139,000 alone. On average, car washes charge $15 dollars per car. This would not include additional add-ons that may be available. Investors can make a large profit off of the recurring income that the predictable consumer demand brings to the car wash industry.

Growth

Owning a car wash will provide a safe and profitable investment. When car wash owners see the increased revenue, many decide to open other locations. They may add on a gas station for sale if space is allocated. According to Brandon Gaille, approximately 65% of car wash stations also dispense gasoline. This would also add new opportunities for growth and increased revenue within your investment. With this eagerness, you can create your own car wash brand on numerous sites.

Added Real Estate Asset

Owning a car wash also adds to your real estate portfolio. When owning this car wash real estate you are receiving a passive income but also a premium return. Owning this real estate asset also offers a resale potential. After making your decision to invest in a car wash, you can decide to sell the real estate/business down the road to fund your retirement or bring in more profit.

How To Invest:

If you are interested in investing in the car wash industry you have two options. You may purchase an existing car wash or start from scratch. However, if you start from scratch, a SIG Car Wash advisor can help you complete the following steps:

Prepare a business plan: decide if investing is right for you.

Pick a car wash business type: full-service conveyer enterprises, express drive-through sites, and self-service establishments with bays.

Pick a location.

Check location for zoning and local regulations.

Cover financing needs: Paying in cash or using funding to cover the investment purchase, upgrades, and expenses up to at least one year.

Consult A SIG Car Wash Advisor

Thinking of investing in the car wash industry? The investment opportunities hold limitless growth. Join SIG at The Car Wash Show in Nashville, TN on May: 5/9- 5/11. Become an attendee or make an appointment with a SIG member at the conference! We will be located in booth #556.

If you’re looking to invest in the car wash industry, get in touch with a SIG advisor. Our experts can help you find the right car wash property for your portfolio. SIG is home to experienced brokers that are designated experts in all areas of CRE, including car wash real estate.

Among its listings, Sands Investment Group offers several car washes that are guaranteed by a large company or a dominant regional operator. These car washes are set close to major roads and offer favorable demographics such as nearby retail stores, companies, and universities. They also offer long-term triple-net (NNN) leases of 15-20 years and attractive cap rates that range between 6.25%-7.5%. Contact the team by calling 844.4.SIG.NNN or check out our current car wash listings to get started with your car wash investment.