3 Reasons Why You Should Buy Commercial Real Estate

Experts believe that buying commercial real estate is probably one of the best moves that investors can make, given the current circumstances.

While apartments are a good choice for purchase, they are fully priced in the local markets, commercial real estate, on the other hand, is rising and has improved greatly, in terms of its vacancy rate compared to the numbers during the recession.

But there are more reasons than not as to why you should buy commercial real estate, and here are 3 of them:

#1: Economy of Scale

Simply put, its easier to manage a number of homes, trailers or offices with more cash flow available to you as opposed to single homes. If you purchase commercial real estate with a number of units as opposed 5 single homes, this means generating more income than usual. Also, if there is a vacancy, it doesn’t affect you all that much when it comes to commercial property.

#2: Ease of Financing

Another advantage associated with commercial property is that you have a number of options open to you when it comes to financing. Not only are private investors open to financing commercial property but one can also obtain a bank loan for the same. A combination of both types of loans for investments isn’t uncommon.

#3: Lease Option Possibilities Exist

Anything above 5 units is considered to be a commercial property. Even if the investments required for commercial properties is a bit more stringent – a larger down payment or even six months of cash to cover operating costs and loan payments, it’s a good thing that owner has the lease option to offer renters.