How to Get Started in Commercial Real Estate Investing


There are several things that investors need to know about commercial real estate, but with some time and effort, everyone can learn the ins and outs very quickly and enjoy the many benefits of commercial real estate ownership.

From PR Newswire 

Commercial real estate advisor Brian Fielding knows that oftentimes people are more likely to invest in residential real estate because it is something with which they are more familiar. They own a home, and they know what it takes to keep up a home, approximate the taxes, and be more aware of local laws and regulations when buying, selling or adding onto a residential property. However, commercial real estate advisor Brian Fielding has been quoted numerous times saying that savvy investors often find that commercial real estate is the way to go for both short- and long-term financial gains.

1. The benefits of commercial real estate.

There is a wide range of benefits that come along with investing in commercial real estate. For one, it helps to diversify an investor's risk in their real estate and overall investment portfolio. When commercial real estate owners lose one or two tenants out of the ten tenants in the building, the owner only loses 10-20% of their income, as opposed to losing a renter in a residential piece of real estate, where the owner would lose all of their income. Tenant rights are also almost always much stronger for residential tenants than commercial tenants. Courts tend to be more lenient with apartment and home residents, recognizing the basic needs for personal housing.

2. Cash flow.

Commercial real estate leases tend to have longer-term commitments than what one finds in residential property investments, and often, those tenants have an established financial history.  While it is true that a local pizza parlor might have limited historical financial data, many commercial tenants are extremely strong and their credit can be financeable. Indeed, if the tenant has a good Moody's rating, investors will find that lenders will be more than willing to lend monies on the basis of their term. For example, if the investor has a very creditworthy tenant with a 20-year lease commitment, lenders will often tailor their terms to that period of time, allowing the investor to leverage their investment heavily.

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