Commercial real estate is a very broad term that includes everything from small rental properties on up to large-scale construction and everything in between. The trajectory of the commercial real estate market is on an upswing, opening up opportunities to generate revenue for investors at all levels, from the seasoned professional to the person who is looking to get their first commercial property.
Commercial Real Estate for Beginners
Investment properties are not just for the wealthy, and everyone needs to start somewhere. For those who are one the fence or just entering the commercial real estate arena, there are two major paths. The first is to purchase a property and turn it into a rental. Buying a home and making improvements to attract tenants will generate monthly revenue which can be used to not only pay off the property, but also provide money that can go right in your account. Obviously, the more units available for rent, the more revenue the property will yield. A duplex or other multifamily property is an excellent way to start off in commercial real estate.
The second method for beginners is to start flipping properties. Purchasing real estate below the market value, fixing it up, and selling it for a profit is a great way to make a healthy sum of money in one shot. Many new commercial real estate investors end up making careers out of flipping properties, and it is one of the most accessible ways to generate revenue today. If the property doesn’t sell immediately, commercial real estate investors can easily convert the property to a rental so that it generates revenue until a buyer comes along.
Larger Commercial Real Estate Opportunities
As we move up the ladder, we see investors purchasing office space, retail buildings, large apartments complexes, restaurants, entertainment venues, and more. These larger investment properties are usually purchased and leased to private and professional tenants and easily generate the revenue necessary to cover utilities, insurance and other expenses, as well as providing a healthy profit. Some commercial and industrial properties have even lower overhead and the tenants themselves will provide their own insurance and maintenance, depending on their needs and the specifics of the lease. There are also ground-up construction projects for new structures which attract long-term tenants, such as hotels, healthcare centers, and more.
Commercial Real Estate Financing for Properties of All Sizes
Nanaki Capital provides a wide range of commercial real estate financing solutions. Whether you are lining up your first investment property, a large-scale construction project, or anything in between, our team will work with you to create a funding strategy to help you reach your goals. Contact Nanaki Capital today to get started.
