3 Tactics That Help You Get Ahead in the Commercial Real Estate Industry
The commercial real estate industry involves properties which are used as a work space, or as living areas for multiple families, as opposed to the typical single-family residential real estate properties that homeowners are associated with. It can be very profitable to invest in buildings which are used as restaurants, hospital buildings, shopping malls, retail stores, and apartment rentals, and that is what attracts a number of investors to the market. Here are three different ways you can participate in the commercial real estate market to improve your financial position.
Low vacancy, low expansion areas
It’s generally a good idea to invest in commercial real estate which is located in areas where there is low vacancy, since that’s a strong indicator of good commercial activity in the area. Areas which have only limited expansion potential are also good to invest in, because it creates a classic scenario of low supply coupled with relatively high demand, all of which operates in your favor as an investor.
Real estate investment trusts (REIT’s)
Real estate investment trusts provide an opportunity for indirect investment in commercial real estate. These trusts have a wide range of investment properties included in them, and are publicly operated. Managers of the trusts have all the responsibility for maintenance, dealing with leaseholders, and satisfying any factors involving trade. As an investor, you don’t ever have to be personally involved.
Commercial mortgage-backed securities (CMBS)
Commercial mortgage-backed securities represent a second way of investing indirectly in commercial real estate. These securities are comprised of a collection of mortgages from various enterprises, and as there is a constant infusion of incoming cash from mortgage payments, they typically pay off well for investors.
Commercial real estate through ASA Capital Funding
When an opportunity arises in commercial real estate, you’ll probably need to arrange for adequate funding to close the deal. We may be able to assist with that funding at ASA Capital Funding, so please contact us whenever possible to discuss options with our commercial real estate specialists.