Commercial Properties: Getting The Most Out Of Your Investment
The world of commercial real estate is perhaps one of the most accessible businesses for those with an entrepreneurial spirit to get into without much initial overhead. After all, people can now run their businesses right from their smartphones, without the need for an office or other employees. However, the types of commercial properties available can seem overwhelming at first. At BG Capital Funding Group, have put together a simple guideline to help investors get the most out of the commercial properties.
Selling Commercial Properties
One of the biggest trends in recent years has been buying and selling of commercial properties. Commercial real estate investors will purchase properties well below market price, perform the necessary updates and renovations, and then sell them for an amount comparable to other properties in the same location. Flipping properties is something that people with a DIY background, or access to local contractors can do, and make tens and hundreds of thousands with every sale. Listings are being constantly updated, and simply driving around the neighborhood will reveal everything from homes to office space which can be renovated and sold, thereby generating a lot of revenue very quickly.
Renting Commercial Properties
While renting commercial properties may not offer the high yield as selling, it has other advantages. Renting out properties provides a steady stream of revenue. Commercial real estate investors typically rent out multifamily dwellings, office space, and even storefronts. The advantage of renting out commercial properties comes with the number of units. Having more units to rent yields a larger stream of revenue. While flipping properties offer large amounts of revenue all at once, those properties are not sold on a regular schedule. Sometimes it can take days or weeks to sell a property. Renting a property guarantees revenue every month, even if the amount is lower than selling. Additionally, if a tenant moves out, the revenue from the other units provides a buffer for your cash flow. Renting is not an “all or nothing” venture, and is considered the safer route for many who are new to commercial real estate.
Financing For Commercial Properties
Most people use external funding to purchase commercial properties. Fortunately, there is a wide range of options available to finance property transactions. SBA loans, conventional loans, bridge loans, and the like are accessible and affordable, to keep projects on track so properties can start generating revenue quickly.
At BG Capital Funding Group, we specialize in commercial real estate financing for properties of all sizes. If you are starting out in the commercial real estate field, contact our offices. We will work with you to create a custom solution to finance your next project. Contact us today at 702-605-3100.