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The 3 W’s of Commercial Real Estate Investment

Why Commercial Real Estate Investment?

Stocks, bonds, commodities and a host of other investments have one main ingredient: They all share volatility and the RISK of accelerated decrease in value overnight. The overall world markets susceptible to a host of harmful events THAT can wipe out investments at lightening speed are not suitable for the average investor.

At the very least, 10 percent of your overall investment income should be connected to commercial investment property or commercial income properties in some fashion. Stability with no overnight sensations with locked in loans and quality tenants along with great locations help an investor sleep more peacefully.

Reliable income monthly and slow appreciation along with tax write offs contribute to the common sense investment in commercial real estate.

Where Commercial Real Estate Investment Need To Take Place?

In cities and states that have a history of growing in population and business. Great locations in those cities along with little chance the location will have issues like poor access and limited uses. No income tax states that allow owners to avoid state tax to pay on commercial investment property.

How Commercial Real Estate Investment Need To Be Done?

Use real estate professionals in the field that locate understand and can explain the difference in property values and locations similar to a doctor that can tell you about your illness when sick. Looking on public websites to get an idea of product is fine but is no substitute for professional guidance when actually trying to select just the right investment.

One mistake such as not knowing that the sales of the business of the tenant are below average threatening the possible renewal of the present lease. Or the closing of major business in the area of purchase that may cause a severe downturn of economic activity in the area.

 

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Tags: commercial income properties, commercial investment property, commercial real estate, real estate professionals

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