Commercial
real estate investment’ refers to the class of real estate that is primarily
meant for investing money for profits later on. Examples of such properties
include:
• Restaurants (including franchises)
• Retail
• Office buildings
• Self-storage (Mini-storage) /
industrial
• Strip malls
• Hotels (also called
"hospitality")
• Multi-family / apartment buildings
Why invest in commercial property?
Unlike
residential real estate, Commercial real estate investment is evaluated,
bought, and sold based purely on numbers - on a set of factors that describe
what kind of return on investment you can expect with the property. Most
Commercial real estate investment is expected to make a return for you on an
on-going (monthly) basis. With the retail boom and increasing return on
investment in the commercial real estate market, the value of commercial real
estate have grown by leaps and bounds, particularly, in the commercial areas,
where the local retail shops and shopping complexes have been replaced by huge
and swanky malls.
What to expect?
Remember
though! Commercial real estate investment is a long term opportunity, do not
expect to increase your net worth over night. No one is going to profit all the
time. Real estate investors have to suffer through times of little to no cash
flow - it is part of the game.
This
may cause panic but if you can stick with it for the long term, cash flow will
increase. Investing especially in real estate is not for the weak of mind or
body. It can be frustrating, and stressful. But for successful investors the
rewards are priceless.
Visit www.kenyan-real-estate.com
for more informative hints on real estate.
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