“Risk comes from not
knowing what you’re doing.”

Investing in Commercial Real Estate is considered by many to be one of the safer and more profitable real estate investments around. Commercial Real Estate investments provide tax-deferred returns immediately while still offering the same, and often greater, element of appreciation.

Benefits of investing in Commercial Real Estate.

Another benefit with investing in Commercial Real Estate is that such an investment allows one to capitalize on the economies of scale. With a single family investment, when the property is vacant, the owner is responsible to cover the mortgage, any repairs necessary, and all marketing costs and efforts to re-occupy the property. When investing in Commercial Real Estate, vacancies can be more easily absorbed because multiple units are still producing income. The same principle applies to property improvements and repairs; costs for such items are spread over all of the units in the complex.

Safe in terms of Market Growth.

In addition to the aforementioned safety characteristics of operations, Commercial Real Estate are also inherently safe in terms of market growth. Economic downturns or recessions do not impact apartment rentals in the same way as other investments (i.e. the stock market, other real estate investments, etc.) are effected. Commercial Real Estate are affected differently because they are essentially the lowest form of housing available and are needed regardless of the current state of the economy. In fact, downward turns in the residential housing market often spark rents to increase as fewer people are buying homes.