If you’re looking for a strong investment opportunity and a great way to diversify your portfolio, commercial real estate might be a good place to start. However, like any investment, it comes with some pros and cons.
The MMS Experience takes a look at some questions you might have about this opportunity to help you figure out if it’s right for you:
Q1: Where do I start?
A1: Investigate your market to get a sense of your options, as well as what your best moves as a business owner would be.
- Take a look at these signs that commercial real estate will make a good investment.
- Here’s a look at some of the best places for commercial real estate investment
- These tips can help you understand the loan process for commercial real estate.
- Working with a real estate professional who is a member of the National Association of Realtors offers additional assurance.
Q2: What responsibilities come with my investment?
A2: Commercial real estate investors work as landlords, but your day-to-day responsibilities can vary based on what you’re willing (or able) to outsource.
- Here’s an outline of what to expect as a commercial landlord.
- Hiring a good lawyer is always wise, as they can help you avoid potential legal pitfalls as you go.
- Don’t want to work with tenants directly? Property managers can work as a go-between for a portion of your profits.
Q3: When is commercial real estate a bad investment?
A3: Several factors can lead to more “cons” than “pros” when it comes to any investment. Here’s a look at some of the most common drawbacks to commercial real estate:
- The initial and ongoing costs can cut into potential profits.
- More visitors and patrons mean more liability and a higher risk for legal action.
- Even with a property manager, commercial real estate is an inherently hands-on investment, so it can be a big-time commitment.
We hope these resources help you to decide whether or not this is the right move for you. If you’re still unsure, consider reaching out to your financial advisor to get their take. For the right investor, commercial real estate can be a phenomenal source of income growth: Don’t miss out.
Guest Post by Chelsea Lamb at businesspop.net