Commercial Real Estate (CRE) can be a great investment for you to consider adding to your portfolio. Consistent returns, passive income and the potential for appreciation are just three of the reasons why CRE might be a good investment for your portfolio. Of course, it is important to research and make sure the property you are looking at is a good investment. Not all commercial properties are equal. We recently reviewed 3 types of commercial properties in our blog – Types of Commercial Property to Invest In. In this blog we are reviewing 3 more types.
Industrial properties consist of any property that is used for the storage or manufacturing of goods. This includes warehouses, factories, and logistics spaces used for distribution. These properties can range from relatively small to massive in size and offer an investor a variety of different options.
One possible advantage of investing in industrial property is that many tenants who rent these spaces are established companies conducting large-scale operations with a proven track record of success. This allows for stable cash flow to any investor looking to diversify their real estate holdings from more traditional residential investments.
Similar to industrial property, investment in retail space can provide an investor with a stable source of cash flow. While the pandemic has undoubtedly affected traditional retailers tremendously, many have since recovered and some are even posting some of their most profitable financial quarters to date.
With US retail spending at an all-time high, investing in the retail property sector can provide you with the peace of mind that you should not only be able to recoup your investment, but potentially see it multiply very quickly. Over time, with consistent rent payments from your tenants, you will be able to pay back your original hard money loan. These payments, combined with potential market appreciation, can make investing in retail property a very appealing investment option.
A mixed-use property is any property that is used for multiple purposes. This includes properties that have both residential and commercial spaces in the same building. Investing in a mixed-use property can give you the best of both worlds in real estate investing, with exposure to both residential multi-unit apartments and also providing you with steady commercial rental income.
Investing in commercial property doesn’t have to be intimidating. It is far easier to obtain a hard money loan for commercial investments. By investing in mixed-use, retail, and industrial properties, you can ensure stable cash flows while also allowing for the diversification of your real estate holdings.
H&O Capital Funding has helped countless real estate buyers, sellers, lessees and lessors achieve their goals. Our legacy is unwavering commitment to the communities we serve. Houlihan & O’Malley Commercial Real Estate Services specializes in four distinct, yet overlapping, areas of business: Commercial Brokerage services, Private Mortgage services, Appraisal Services and Advisory services.
For more information on loans that we offer, visit our website.