Читать книгу Commercial Real Estate Investing For Dummies - Peter Harris - Страница 27

Comparing Commercial Real Estate and Residential Real Estate

Оглавление

Here’s our definition of commercial real estate: It’s any piece of real estate that’s bigger than one house on one lot. So, commercial real estate includes everything from small apartment buildings (five or more units) and large office buildings to shopping centers, to industrial parks, and even land development.

The three biggest differences between commercial real estate and residential real estate include the following:

 Commercial real estate projects are passive investments only after they’re up and running. Remember that unless you have a ton of money and don’t care about getting huge returns, commercial real estate will take a lot of your time and effort to get started. After all, you have to deal with many things, including the learning process, finding the right mentors or teachers, searching for the right deal, financing your investment, picking management teams, protecting it from lawsuits, and overseeing the project. The good news is that after you have a commercial project off the ground, it’s usually big enough that it allows you to pay other people to take care of it. So, it won’t take much of your time at all — and that’s why it’s called a passive investment. Compare this to a single-family home that may require collecting rents and making repairs for many years to come.

 All it takes is one big commercial deal for you to be set for life. Doing one commercial deal the right way can generate you a profit several times your yearly salary in addition to providing you sizable monthly income as long as you own the property. Residential real estate can produce a sizable profit as well, but it will not generate anywhere near the cash flow that a commercial property will. You’ll receive one check per month from a single-family residence, but you can receive several hundred checks per month from a commercial property.If you don’t believe us yet, consider this: Our clients shared how they got started in commercial real estate. We found out that one of them is in a project that already has a profit of $10 million or more. Another one bought a piece of land near their home for $1.5 million, and it has jumped in value over the past two years to $9 million (and they didn’t even have to use their own money).

 The people that you meet who invest in commercial real estate are all big thinkers. They’re people who have decided that they want to think big, live big, and hang around other people who are just as passionate about life as they are. Until you get involved, it’s difficult to really understand just what your life could look like. Investors of residential real estate think of one monthly check and one tenant; they wait for appreciation (which may never come); and they’re limited in ways of creating massive value for their property.

Commercial Real Estate Investing For Dummies

Подняться наверх