3 Ways You Can Start Investing in Commercial Real Estate
2.5 min read
When considering diversifying your investment portfolio, commercial real estate is the first place you should look. Why? It offers unique benefits such as passive income, low volatility and overall leverage. However, it is important to note that investing in commercial real estate also comes with drawbacks if not done correctly.
It is essential to understand how you can invest in commercial real estate and pinpoint which option work best for you. Luckily, we're sharing three simple ways to get started and what you need to consider.
1. Owning Rental Properties
Purchasing a rental property is a great way to start investing in commercial real estate, as they offer consistent rental income that is often tax-deductible. Rental properties are almost always guaranteed to appreciate over time, with rent rates following suit. However, it is important to remember the responsibilities associated with being a landlord, such as maintaining the property and paying for any associated costs.
2. Fix & Flip Properties
Fixing and flipping properties is another great way to get into the commercial real estate market. It entails purchasing a property and making necessary upgrades or additions to later sell at a higher cost. This allows you to turn a profit in a short period of time. However, it is not always guaranteed. It is vital to keep an eye on the market to see whether it is a suitable time to sell your property to avoid any losses.
3. Investing in Real Estate Investment Trusts (REIT)
Investing in Real Estate Investment Trusts, otherwise known as REITs, is typically the safest bet for anyone interested in commercial real estate. By investing in a company that purchases, manages, and operates commercial properties, there is often less risk than if you were to purchase the property outright. This is a great way to increase your portfolio diversification without getting your hands dirty.
Investing in commercial real estate may seem like an intimidating feat; however, if done right, it can help you secure a recurring revenue stream and increase your footprint on the market.
Resource
Shannon Terrell . (2021, November 5). 7 types of real estate investment options: Finder Canada. finder CA. Retrieved April 12, 2022, from https://www.finder.com/ca/real-estate-investing
About Royal LePage Commercial Westhaven
Our commercial real estate industry and segment expertise coupled with Royal LePage’s national platform and integrated systems provides best-in-class real estate strategies and a competitive advantage that can’t be beat.
We help businesses identify opportunities and maximize their return on investment with actionable goals, centralized support services and a strong commitment to customer success. Our national partnerships help us establish, guide and execute successful business investments.
We offer commercial real estate agents a professional environment, focused 100% on commercial real estate. Agents can expect unlimited market boundaries to build their business without the interference of a heavy corporate structure. In addition, agents will be able to access Royal LePage’s national referral network of over 18,000 agents to develop more business in their target markets with incoming leads generated daily. The brokerage provides agents a suite of services including marketing, promotional, networking and professional development needs.
Innovation and service excellence have developed and propelled the Royal LePage brand since 1913. When you join Royal LePage Commercial Westhaven brokerage, you have the backing of one of the most powerful commercial real estate services company in Canada—Bridgemarq Real Estate Services Inc. (formally Brookfield Real Estate Services Inc.). Bridgemarq is a leading provider of services to real estate brokers and agents. They are an affiliate of Brookfield Business Partners, a business services and industrials company focused on owning and operating high-quality businesses and is listed on the New York and Toronto stock exchanges.