While there are many people who seem to believe that investing in residential real estate and single-family homes is the way to go, investing in commercial properties is much better. Instead of focusing your real estate investing on residential properties focusing on commercial properties is a better option for a variety of reasons.
First of all, when it comes to investing in commercial properties, you will not have to worry about personally qualifying for a loan. The property itself qualifies for the loan. You usually will not have to worry about personally guaranteeing the loans when it comes to investing in commercial properties. Non-recourse financing is the type of financing most often used for commercial real estate investing. If your loan is foreclosed on, the bank will take the property, but they can’t come after you personally. Also, it will never affect your personal credit score.
You will also have the opportunity to deal with professional tenants when it comes to investing in commercial properties, instead of dealing with the tenants that come with residential properties, which is a huge benefit.
Another reason to invest in commercial real estate is to maximize your potential for profit on any one deal. You would have to invest in a lot of single-family homes to generate the kind of profit you can make on one commercial real estate investment.
So, with the proper education and training, it can be the right move to break into the field of commercial real estate investing. Continue reading