How To Get The Most From Commercial Property Ownership
Property ownership is one of the most tried-and-true ways to ride an investment vehicle that may never run out of gas – after all, they cannot create any more land, right? This means that, occasional downturns notwithstanding, the price of property overall is slated to rise. In particular, the more robust commercial real estate route is fraught with difficulty; the following tips will help you better navigate the road.
Keep Emotion Out of Your Real Estate Acquisitions
As denoted by veterans of the commercial real estate market, the number one reason for buying property in this space is that the buyer (a former renter) wanted to stop paying rent! This is a bad reason for taking on the investment; it is an emotional reason instead of a financial one, as you may not be able to make the property profitable after acquisition. Renting for a long time has already cost you enough such that you are doubly indebted from the outset (since you’ll almost certainly need a commercial real estate loan. It may be a superior financial decision to just keep renting and perhaps to sublet if possible.
Detail the All the Potential Revenue Streams
What financial positions can you hope to acquire through ownership? How feasible is billboard advertising on your property – which could bring substantial monthly rent; especially if the property is near a freeway or Interstate? Can the rooftops support solar panels – there are many energy companies that will pay you for this real estate, all while you get to use the panels to save on energy bills. Here’s a big one: is your commercial real estate property situated in a position where a cell phone tower placement would be optimal? If so, this could result in a large monthly income stream from a cellular company.
The above ideas are just a start; they represent just a peek into the multiple income streams possible with commercial real estate purchased soundly.