Reasons to Invest in Commercial Real EstateAugust 23, 2015
Investing in commercial real estate in Destin is a natural progression for many investors – and for a good reason. Flat-out, bottom-line, it just makes sense. So you can see where we are coming from, here are three reasons to consider a venture into the commercial real estate business:Â
1. Economies of Scale: Think about it – you can manage a lot more apartments, condos, mobile home parks and offices than you can manage residential homes. And if you have enough units to justify an onsite manager, you’re out of the property management game.
2. Valuation: While market comps and replacement value helping in determining commercial property valuations, the true value is found in NOI (net operating income). NOI is the gross income minus operating expense. Long story short, propertiesÂ could rise in value just by increasing the rent and lowering the vacancy rate.
3. Creative Financing: Did you know you can purchase multi-unit properties with little or no money down through private money partners? More often than not, commercial loans are lenient and flexible (at least compared to residential loans).Â
Interested in learning more? Contact a local RE/MAX Destin agent today and see how to start a career as a commercial real estate investor.