Ways To Make Money With Commercial Realty
Are you interested in buying a commercial property in hopes of making money? It's certainly possible, but you will need a detailed plan, patience, and a bit of luck. Like any investment, there are certain risks you'll take on, but if you do it right, you can significantly minimize that risk.
There are lots of different types of commercial properties that you can potentially buy. You could purchase a store, restaurant, warehouse, office building, etc. Each will come with certain risks and advantages, and choosing the right one will depend on how you plan on using it.
Buying Commercial Land
One option you have when buying commercial real estate is purchasing land zoned for commercial use. You could build a structure on that land to use, rent, or sell—or sell the land without a building once the area becomes more in demand for businesses. If you know that a popular company is coming to an area, you could buy commercially-zoned land nearby in hopes that other companies will want to set up shop there.
Flip the Property
One common way people profit from commercial real estate is to purchase a place that isn't in great condition, fix it up, and then sell it at an increased cost. The trick is to spend less money than the profit will be; otherwise, you'll lose money in the process, and your hard work will be for nothing. If you're good at fixing places up yourself, you'll increase your odds of making a significant profit.
Hold Property While Value Increases
If you expect the cost of commercial properties in a particular area to increase significantly over the next few years, you can purchase one and wait until prices go up. You won't have to do anything except wait, but you face the risk of the property values not increasing as predicted.
Use the Property for Your Own Business
If you have a business of your own, buying a commercial property can quickly become lucrative if your business earns enough money. Buying commercial real estate might be your way of upscaling your business and allowing it to start making a lot more profit. You will be making extra money if that profit exceeds the added costs of owning the property.
Rent Out the Property
Another way to make money with commercial realty is to buy a property to rent to businesses. You could buy a single storefront property to rent to a shop owner, a huge office building to rent to multiple companies, etc. Make sure there's enough demand, or you'll be stuck with an empty property costing you money instead of making it.
For more information, contact a company like RE/MAX Commercial Investment Realty.
Share