For many of us, we are told that real estate is the best investment you can make. Most people think of residential real estate first. We think we can flip a house, we can get some tenants, we can resell the land, and make profit. But, what if you took those strategies and applied them to a multi-billion dollar industry like commercial real estate? You can make a whole lot more money and reap a lot more rewards for your efforts. Here are a few ways to jump into the commercial real estate market and start making major funds.
Flip it
Just like in residential real estate, you can buy a property and flip it. This works well with multi-unit apartment buildings and with some commercial business properties. Basically, there is a formula and path, and it looks a little like this.
First, buy your property. Obviously. Next, give that space a makeover in order to add to its value. Once that value goes up, get tenants in there and then refinance. Once you do that, you will gain a lot of your capital back and you can either sell or continue to invest in the property. It works best if the property you buy is under its value.
If you buy it, they will come
Another one of the best commercial investment strategies is to buy land and wait for the developers to come to you. This works the best when you buy in an area that you know is about to be developed. This means you have to keep your ear to the ground and see what’s coming up down the line. You can buy the land for cheap and then just sit on the purchase until the development makes its way to your neighborhood. All you have to do is wait for the phone to ring and pick it up when someone wants to buy your land. You can make serious profits off of this kind of sale.
Traditional purchase
Money can also be made from simply buying a commercial property and just making money off of it. This will require a lot of research beforehand so that you know what kind of money the property is already making and how much you can make off of it if you make a few changes. In your research, you must figure out if your idea for the property is viable and will work. It’s a bit of a risk, but if you know what you’re doing, your vision will make you a lot of money whether it’s simple renovations, updating the property, or tearing down and building a new idea from scratch.
Move in yourself
If you have a business, buy the land and move in yourself. Your business can pay off the mortgage for you. If there are more units in the building, get tenants to pay rent that will also go towards taxes and paying off the land so that you can start making profit faster.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)
