http://www.REIClub.com - What Is Commercial Real Estate Investing? Here’s A Quick Video On The Many Types of Investments And Their Benefits.
TYPES OF COMMERCIAL REAL ESTATE
- Multi-Family Apartment Buildings
- Self Storage
- Mobile Home Parks
- Retail Space/Center/Complexes
- Office Buildings
- Industrial, Manufacturing and Warehouses
- Land Development
- Hotels and Resorts
- Health Care Facilities
DIFFERENCES BETWEEN COMMERCIAL AND RESIDENTIAL
- VALUATION
- FINANCING
- RENTAL COMMITMENT
- MANAGEMENT
- COSTS
BENEFITS
- Huge income potential and High Returns
- longer lease periods
- rent increases are built into the agreement with the tenant
- Numerous Tax Benefits
- Sellers can be more Flexible in Pricing
- A lot of expenses are paid by the tenant - triple net
- High appreciation potential
DISADVANTAGES
- more risk vs. residential
- Lots to learn
- Ties up capital
- Downturns in economy have bigger effects
- Mechanics of purchase are more complicated
- More legalities
