Commercial Real Estate Investors are an interesting breed. Careful yet risky investors seeking higher returns and seeking a more stable income are the ones who tend to seek commercial opportunities in Real Estate.
I say they’re a careful bunch because while nobody likes to lose, these guys aren’t willing to risk anything without a higher reward. This type of investing takes a lot of thought and planning. The return from a shopping center, strip mall, apartment building, can appeal to most, but managing all that is quite an undertaking. Plus with more tenants, especially in a commercial environment, means more opportunity for things to go wrong! With a great management team and strategy, life is much easier. But for those who want to consider this undertaking on their own, there certainly is much to consider when investing $500,000, $5,000,000, or even $50,000.
Higher returns and stable cash flow are what make these deals appeal to investors of all types. For example if you own two rental properties and one tenant doesn’t pay, you’ve lost half of your cash flow. However if you’ve invested in an apartment building with 5 units and one doesn’t pay, you’ve only lost 20% of your income. The more you grow and better manage your investments, the more stable they become and the more value they hold.
One of the biggest ways to reduce risk in investing is to consult with a professional at the very first stages of your desire to invest. Feel free to give me a call to discuss any investment or Real Estate opportunities as there are many commercial and residential ones available at this time.
Albert C. Leskovar Jr.
302/423/0276