Commercial real estate

Commercial Real Estate Investing

Commercial real estate is a broad term for retail properties, office buildings, shopping centers, hotels, warehouses, manufacturing facilities, apartment complexes - and vacant land that has the potential for development for these types of buildings. In short, almost any kind of real estate except single-family home and single-family lots can be regarded as commercial real estate.

Real Estate Commercial Overview

Commercial real estate usually refers to any apartment building that has over four units, but can also include shopping centers, gas stations, office buildings, etc.

Pros of Real Estate Commercial:
  • Strength in numbers. Multiple units with only one roof to repair, one yard to cut, and one location to drive to.
  • Excellent tax advantages
  • Long-term wealth building ability
  • Non-recourse loans available (the bank can only go after the property, not you, if there's a default in payments)
  • Credit for these properties is based on not just the investor, but on the property as well
  • Strong cash flow potential allows for potential delegation of management responsibilites
  • Turnover can be managed more easily, as there are other units that can offset the loss of rental payments
Cons of Real Estate Commercial:
  • Although many sellers will take back a second mortgage, most properties require a substantial down payment of at least 10% of the purchase price
  • Poorly managed properties can lead to financial ruin very quickly
  • Property managers need to be supervised closely, as no one will will take care of a property like the owner.

Marketing Advice of Real Estate Commercial:

  • Finding a realtor who specializes in commercial real estate in your area can be a huge asset.
  • Market to landlords who are going to eviction court.
  • Market to landlords who live out of town.
  • Look for properties that look poorly managed and market to the owners. 
     
     

Commercial Real Estate Articles



Commercial Real Estate Forum Topics


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Commercial Real Estate Blogs



By: The Money Finders, LLC
The Money Finders, LLC
 

View all 12 Commercial Blogs

Commercial Real Esatete Books


Commercial Real Estate Investing for Dummies

Yes, there is a fun and easy way to break into commercial real estate, and this is it. This comprehensive handbook has it all. You’ll learn how to find great properties, size up sellers, finance your investments, protect your assets, and increase your property’s value. You’ll discover the upsides and downsides of the various types of investments, learn the five biggest myths of commercial real estate investment, find out how to recession-proof your investment portfolio, and more.

Confessions of a Real Estate Entrepreneur

This book's theme is 'add value' to real estate, whether you invest in raw land, houses, run-down factory buildings with rezoning potential, or fixer-upper apartments and offices. The self-deprecating author shares his mistakes and his successes, along with his advice to invest with as little of your own cash as possible so profits can be maximized.

Property Management for Dummies

You'll need to wear many hats in the business of property management: advertiser/promoter (in seeking tenants), host (in showing your property), handyman (in keeping up with and arranging repairs), bookkeeper (in maintaining records), and even counselor (in dealing with tenants and their problems). But Property Management For Dummies will help you maintain your sense of humor – and your sanity – as you deal with these challenges and more.


Commercial Real Estate Videos

James Randel - Real Estate Investing Success Skills (2 of 6)

On The Road with Robert Kiyosaki

Commercial Real Estate Resources


Rent Collection

Description: The best way to keep track of rent and other payments and expenses. Great for the real estate investor with a large number of units.

HUD Properties

Description: Government listings of HUD properties. Follow the link to find properties within the records of your state.

Custom Forms

Description: If you need a specific form not here on REI or too unique for Socrates for your commercial real estate deal, this is the way to go. Custom forms created fast for any state.


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