Commercial Real Estate Investing Tips
Commercial Real Estate, or CRE, is an asset class that has amazing potential for investors, both small and large. At one time, this was a small, private sector where assets were bought, sold, and built. Now, almost any investor can access CRE investment.
What is Commercial Real Estate?
Commercial real estate is a physical property that is used for business. It can be owned by the business that operates out of it or it can be owned through a third party and leased by the business.
Most CRE investors select a sector to focus on and have several assets in that class, while others invest in multiple CRE sectors to diversify their portfolios. Of course, CRE isn’t the only option for real estate investing, but it is one of the best.
Residential real estate is typically secured by one property, tenant, or lease. If a tenant leaves/damages the property or a large expense comes up, it could dramatically decrease your cash flow. Depending on the property, you may have multiple tenants in one piece of commercial real estate- which mitigates the loss from one tenant leaving or damaging their unit.
There are so many options on the market today, it’s never been easier to get started in CRE investment. This can be as simple as buying a single share or as complex and locating, acquiring, and then managing your own commercial real estate property.
If you want to get started, here are a few questions to ask yourself:
Do you want to be passive or active with your CRE investment?
What investment vehicle makes the most sense for the funds and time you have available?
Which companies/investment opportunities are in those areas?
If you are interested in moving forward with CRE investment, contact Summit Commercial Capital for more information. We’d love to help you!