Despite the fact that real estate investments come in a variety of forms, residential investing and commercial real estate investing are probably the most common.
The traditional, physical method of investing in real estate can yield high returns, but it also requires a large initial investment and might have considerable recurring expenses. For less than the price of a traditional property, real estate investment trusts (REITs) and crowdfunding platforms offer low entry barriers to venturing into the industry.
No matter if you have time and money to invest in a property or not, there are several ways to get started in real estate investing. Let’s look at two methods that are not commonly tapped by investors, corporate real estate and commercial real estate.
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In commercial real estate investing, capital is typically invested by commercial real estate owners, investors, or developers for the purpose of earning a profit.
The focus of their investment is on how much, how stable, and how much quality income can be generated from a property investment when the risk and capital investment are taken into account.
Investing in a stand-alone retail store property, for example, may include the expectation of securing a long-term lease from a creditworthy tenant, which should provide quality, stable income for many years to come.
Commercial vs residential real estate has quite a number of differences. Due to the fact that residential real estate deals with literally people's homes and that borrowers and buyers are much less sophisticated, residential real estate is so regulated.
Commercial real estate, on the other hand, has the bias that you are a knowledgeable investor and the other party is as well; so often, this is not true, but that is just an industry bias.
Generally, corporate real estate investments refer to owned and leased properties used by businesses to support their business operations. Corporate real estate is by definition a type of commercial real estate, however, what differentiates these properties is what their tenants or investors seek from them.
For instance, the visibility of a stand-alone retail store property, how closely it matches the marketing plan of a corporation, and the flexibility it offers to expand, contract, or relocate as customer preferences and market focus change might be considered by a corporate user when evaluating a stand-alone retail store property.
In essence, corporate real estate investments are intended to support their businesses, while commercial real estate investments aim to generate a return.
As a result of these differences in perspectives, providers offer different services to clients of different types. For example, they could offer commercial investors a landlord agency service so they can find a long-term tenant.
Corporate investors, on the other hand, may benefit from the site selection services offered by service providers to locate properties that meet their market, customer demographic, and configuration needs.
It is necessary for commercial and corporate investors to collaborate with each other to achieve their respective objectives, regardless of the fact that they have different goals.
While service providers have experience with real estate in general, it is the client's focus that determines what services are delivered to which type of client.
There is no right or wrong answer to this question. According to your unique circumstances and goals, the best answer is the one that works best for you.
Investing in corporate real estate can benefit you in terms of legal liability protection & tax savings, but if you only intend to own one to two properties, the benefits & savings won't be substantial.
If you plan to own several properties, investing in commercial real estate may make sense for you, but the paperwork & structure can get complicated.
Either way, if you want to make sure your investments go smoothly, you should speak with a real estate expert and tell them the following:
It's possible for real estate investors to create an effective investment program by paying a relatively small part of a property's value upfront, whether they're investing for their business or to generate income.
No matter what real estate investment you make, there is always the potential to profit regardless of the market's overall condition.
Whatever real estate investment method you choose, our team at Saint Investment Group can help investors reduce their risk and gain more stability as a result of their investments.
We carefully select investment opportunities from a variety of property types to ensure long-term stability for you as our investors.Visit our website to learn more about investing in real estate, or get in touch with us to learn how we can help. Get in touch with us by sending an email to general@saintinvestment.com or by calling 949-881-7128 at Saint Investment Group today!
A master in Investment, Marketing, and Capital Raising.
Nic has honed his focus on the Real Estate and debt markets with Saint Investment Group and pursues large-scale Distressed Asset purchases with his partners and syndications.
