Have you thought about commercial real estate investing? While most people know about residential real estate, commercial real estate can seem overwhelming and unattainable. The truth is, it’s not only for the ultra-wealthy or institutional investor. Yes, it’s a complex and costly investment, but you can get started investing in commercial property with little to no experience.
Commercial Real Estate Equals Profit
The buildings where we work, the stores where we shop, the doctor’s office, the dentist’s office, and the apartments people call home are examples of commercial real estate. Their primary purpose is to generate revenue.
Miriam Webster defines “commercial” as “viewed with regard to profit.” In essence, commercial real estate is a business. While you can purchase residential property as an investment, commercial properties offer more upside potential. They have more stable income and expenses, higher cash flow, and longer term leases than single family homes.
Avoid The Headaches of Commercial Real Estate Investing
Sounds interesting, but who has the time to learn all the details of owning and managing commercial real estate?
If you’re an accredited investor, there’s good news. You can reap the benefits of owning commercial real estate and be completely hands-off. You receive cash flow without all the headaches. You don’t need to identify and evaluate opportunities, obtain financing, negotiate sales, or manage the day-to-day responsibilities of the property.
How is this possible?
You can partner with seasoned real estate professionals who have a track record of selecting the right properties and successfully managing them. Instead of relying on one person’s knowledge, you bank on the skills of a group of expert real estate professionals.
Reap The Benefits Of Commercial Real Estate Investing
By investing as a partner in commercial real estate, your rights are protected through an LLC or LLP with all the terms detailed in the Operating or Partnership Agreement. This is known as real estate syndication, and it can be a smart way to maximize the returns of your investment portfolio. The syndicate closes the deal and manages the property, while you collect income.
There’s one big requirement: you must choose real estate professionals with the right knowledge and experience. They need know how to raise capital, and they need to be experts in identifying, evaluating and managing commercial properties. Any partnership you choose should have complete transparency. You’ll want such things as the ability to tour the properties and regular progress reports.
With the right expert professionals working on your behalf you’ll receive:
You have more access to large scale investments and one-of-a-kind opportunities than you would on your own.
You are able to spread your investment across quality properties that are more likely to withstand a market downturn. This would not be possible individually.
You’ll sit back and receive monthly or quarterly payments without any responsibility for the day-to-day management.
You can increase your net worth with commercial real estate. It can increase in value through added efficiencies or physical improvements.
When partnering with real estate professionals with a proven track record, you avoid the pitfalls and mistakes of trying to invest in commercial real estate alone.
It’s easier than you think to increase your net worth through commercial real estate investing. What’s been your experience in real estate investment? Have you ever considered owning commercial real estate in partnership?
To learn how RAMP investments can help you become a commercial property investor, send us an email at firstname.lastname@example.org, or call 818-227-8000.