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Passive Investing in Commercial Real Estate

Wouldn't it be nice if you could invest in commercial real estate property, watch it grow, and spend a little time managing it? Passive real estate investing can make it possible.

Investors who invest in passive commercial real estate do not need to manage their properties on a daily basis. A real estate investor does not carry out physical labor or maintenance, such as repairs or maintenance, nor do they act as a landlord personally. 

Although investors do not have to devote much time or effort to earn cash flow, they still need to do some homework. An investor should properly evaluate the opportunity before investing and monitor its performance and appreciation afterward.

Depending on the assessment, utilities, renovations, and management fees may need to be increased or decreased. 

Commercial Real Estate: What You Need to Know First

Property used primarily for business purposes is classified as commercial real estate (CRE). A commercial property may be owner-occupied, which means that the owner can operate their business there or maybe just lease it to tenants.

There are several types of commercial real estate. Office buildings, residential duplexes, restaurants, and warehouses can all be considered commercial buildings. Leasing commercial real estate out or holding it and reselling it can be a lucrative business for individuals, companies, and corporations.

What is Passive Investing?

An investor who invests in passive real estate does not have to exert a great deal of effort to maintain it. Passive real estate investments can be made in several ways. The most common of these are real estate investment trusts (REITs), crowdfunding, remote ownership of real estate, and real estate funds.

It is possible to earn extra income without doing any physical labor or acting as a landlord with the best investments for passive income. Investing in REITs, for instance, is similar to investing in mutual funds, which means that you can earn some extra cash by investing without buying any properties.

The Best Way to Invest in Commercial Real Estate Passively

There may be pros and cons to passive income investments, but the benefits of commercial real estate investing surpass those of other investment vehicles such as stocks and bonds.

Property investment provides you with stable income and appreciation, as well as tax benefits and greater purchasing power. Here are some of the best passive income investments in commercial real estate.

Real Estate Investment Trust

Investing in a real estate investment trust is similar to investing in ETFs or mutual funds. The fact that REITs invest in different types of assets can also help you diversify your portfolio.

It is true that REITs have plenty of long-term data to offer, so amidst the ups and downs of real estate, there will be no uncertainty about their performance.

Crowdfunding

In the last decade, online fundraising has become quite popular. Similar to investing in a REIT, investors can pool their funds with other investors to take on commercial real estate for as little as $500.

In the end, investors benefit from cash flow, as well as the appreciation of their properties over time.

Real Estate Notes

Buying real estate notes through a bank usually means buying debt for a much lower price than you would pay as a retail investor. If you decide that real estate notes are the right passive investment for you, it is highly recommended to do a lot of due diligence first.

When you invest with a bank or a real estate investor, you should be absolutely certain of what you're getting into since you may end up owning that property one day.

Exchange-Traded Funds

An exchange-traded fund (ETF) is a collection of stocks and bonds in a single fund. Similar to index and mutual funds, ETFs offer diversification and lower costs.

These ETFs may invest in stocks of REITs that own commercial properties like retail stores, offices, and hotels, among other things. Real estate investing is certainly made safer by this diversification.

Owner Financing

The same as hard money lending, you can act as a bank for a commercial real estate operator. This option is an excellent one if you own a property, want to maintain a passive income, and do not want to pay high taxes. 

Generate Passive Income by Investing in Real Estate

The best passive income investments can be a good way to earn a steady income without managing or renovating the property.

However, these investments may not be suitable for everyone, and some may prefer more active investments, such as flipping houses and acquiring rental properties.

It is possible to generate passive income from commercial real estate investing if you do your due diligence and work with a professional company. Would you like to know whether passive real estate investing is your best option?To learn more, send us an email at general@saintinvestment.com or call 949-881-7128 at Saint Investment Group today!

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* Information in this message, including information regarding targeted returns and investment performance, is provided by the sponsor of the investment opportunity and is subject to change. Forward-looking statements, hypothetical information or calculations, financial estimates and targeted returns are inherently uncertain. Such information should not be used as a primary basis for an investor’s decision to invest. Investment opportunities on the Saint Platform are speculative and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Please see additional disclosures here.
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