Owning commercial property has plenty of benefits. Any type of property whether commercial or residential can bring you a lot of money. Typically, commercial properties offer greater financial reward as they can be used for many different things. If you plan on investing in commercial property or renovating an existing structure, you will need the capital to do so.
How to Secure Finance
If you don’t have additional funds lying around to purchase commercial property or renovate an existing building, there are ways to secure finance. Many business owners and homeowners use construction loans to remodel their property or add a new one to their portfolio.
Getting involved in the real estate business is easier with commercial construction loans. If you secure a loan from an alternative lender, they don’t usually pay one lump sum. You generally get the money in stages which enables you to build older properties from the ground up.
Once you have secured a commercial construction loan, you can then start to invest the money in property. Here are just some of the many positive reasons to invest in residential or commercial property.
Advantages of Investing in Commercial Property
There are many good reasons to invest in real estate, but here is why commercial property is better than residential.
- Limited Service – Having a commercial property means you only work for limited hours. Businesses close at night, so you won’t get any phone calls about lost keys or tenants who cannot get into the house. In addition, commercial properties are generally secured with good alarms systems and other security measures.
- More Income – You have the opportunity to make more money on a commercial property in comparison to a residential building. They generally have an annual return of up to 12%, whereas a residential home is only about 5% at best.
- Professional Relationships – Business owners tend to take good care of a property as it is their livelihood. Some are managed by groups and not individuals, so they operate as a business and not as a place of residence. These interactions tend to be more professional.
There are many advantages associated with investing in commercial property. Although putting money in residential property will reap rewards, the benefits are far greater with commercial buildings. If you want to expand your portfolio but need assistance, get in touch with a lender and learn more about commercial construction loans.