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:
- Convenience Store
- Dollar Store
- Early Education
- 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.