Do you know how
rich people get rich? They don’t just put their money in the bank;
they put it to work. One of the best ways to have your money generate
more money is to invest. However, some investments can be fragile.
Real estate investments, whether residential or commercial, are
pretty stable in terms of generating income. However, if you are
thinking of investing, better make it a commercial property. Here’s
why.
Valued
Differently
The income you can get from a piece
of commercial real estate is related to how much square footage you
can use. Residential properties have different income ratios, usually
depending on the amenities it provides.
Less Risky
Investments have
an inherent risk. However, commercial real estate investments tend to
generate revenue at a constant rate and can weather tough times. An
example would be a ten-room apartment complex; even if you lose nine
out of ten tenants, you’re still earning.
Better Cash
Flow
You get a higher
income from commercial real estate due to the bigger number of
tenants. Residential properties often only have one renter. If you
rent out a multi-unit commercial property, you can have more tenants
and bring in a lot more money.
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