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Make a Small (or Big) Fortune with Commercial Real Estate By Reggie Williams

Author: Amitava Sarkar
by Amitava Sarkar
Posted: Feb 27, 2015

Who doesn’t want to make as much money as possible? The idea of being able to be financially well off is something that appeals to the majority of people. While there are many ways that you can make a lucrative income, one of the best ways to expand your wealth and to make the most amount of money as possible is through investing.

While there are several investment options available to you, there is one market that should not be overlooked – the commercial real estate market. Proven to be one of the most lucrative investments available, you stand to make a tremendous amount of money when you invest in shops, retail stores, office buildings or medical suites.

So, why exactly is the commercial real estate market such a wise investment? Keep on reading to find out and you will be on your way to making your first investment.

Benefits of Investing in Commercial Properties

Before looking at the benefits of investing in this type of real estate, you should first be aware of exactly what commercial real estate properties are.

In layman’s terms, commercial properties are those properties that are leased out to business owners to provide a workspace for their business. These properties can range from office buildings to strip malls, and from shops to restaurants. So, in short, instead of living space, a commercial property is a facility that is used to conduct business, whether it’s a place where business owners are creating products, or where they are selling their products or services.

Investing in this type of property can prove to be highly beneficial. Here’s a look at how it can help to build your portfolio and boost your wealth exponentially.

Advantages of Investing in Commercial Real Estate

There are several reasons why investing in commercial real estate will prove to be beneficial. Here’s a look at some of the biggest advantages that you will experience.

Lower Risk of Vacancy. Without a doubt, one of the biggest benefits of investing in commercial real estate is that there is a lower risk of vacancy than there is with residential real estate. Unlike single-tenant investments, such as a single family home, which can sit vacant for a long period of time, the risk of vacancy with a commercial property is far less. Since commercial properties involve the owning and renting of two or more units, you are much more likely to have at least one of your units rented at all times.

Greater Income Potential. The rent that is charged for commercial properties is much higher than the rent that can be charged for residential properties. You are more likely to get several thousand dollars a month from the rental of a commercial property than you would be with a residential property, which means that you, the owner, will end up with more money in your bottom line at the end of the day.

Less Competition. There is much less competition to go up against when you invest in a commercial property. In residential real estate, there are countless houses, apartments and townhouses that are available to rent. However, when it comes to commercial real estate, there are far less buildings that are available for potential tenants to rent. This means that you will stand out in the real estate market and make a far greater income.

Sellers that are Flexible. Another benefit of investing in commercial real estate is that the sellers are much more flexible. The people who own these properties are much more likely to move in price, since they aren’t emotionally attached to the building, which means that you can buy the property for a great price.

About the Author: Reggie Williams is a financial wealth manager who strongly suggests you make a smart investment with commercial real estate.

About the Author

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Author: Amitava Sarkar

Amitava Sarkar

Member since: Nov 27, 2014
Published articles: 349

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