If you’re an investor and want to make the transition from residential to commercial real estate, it’s best to start this process by knowing what it means to acquire commercial real estate and which properties fall under his category. If you’re a Colorado resident and are seriously considering being a commercial real estate owner, here are some important things to know.
What is commercial real estate?
When you think of commercial real estate, what comes to mind? You may immediately think of malls or shopping centers but this type of real estate also includes factories and warehouses. You can also purchase mobile home parks, apartment complexes, and cell towers if you want to become a commercial real estate owner.
To make sure your purchase returns a good investment, it’s best to rent your property to tenants who want to use the space for work or living purposes.
Choosing the right real estate investments for you
Commercial and residential real estate are the two main categories of property you can purchase. You can purchase residential property and rent it out to tenants or buy a shopping center or factory that business owners can use to further their companies.
There are several assets connected to commercial real estate. However, you have to make sure that the price you charge to renters allows you to make a significant profit based on what you paid for the property. Just as the purchasing price for real estate is competitive, the rate that you charge for property rental should also be competitive. It is best to speak with a financial advisor before investing in a property so you can choose the commercial property that fits within your portfolio and will yield a satisfactory return.