If you are investigating potential commercial real estate investments, there are a wide variety of available options. Here are the top 13 ways to make your next investment the best you have ever made.
- Multifamily housing – Buildings include two to four units, with separate kitchen, bath and living facilities. If you are an owner occupant, you can obtain better financing terms.
- Apartment buildings – From small standalone buildings to large multi-structure complexes, apartment buildings can generate steady rental income.
- Commercial office space – Choose a location that is up and coming, and seek tenants that can achieve business synergy by being co-located.
- Commercial retail space – Again, look for a location with potential and tenants that can benefit from each other. This will make your commercial real estate property even more attractive to renters.
- Fix and flip or fix and hold apartment buildings – Find buildings that need work and structure smart deals to buy them. Once the renovations are complete, you can sell or hold the property and continue to collect rental income.
- Wholesaling apartment buildings and commercial property – As above, find properties that will need work to create an attractive deal. Get them under contract and then assign them to a cash buyer in exchange for a finder’s fee.
- Land development – Purchase vacant property with the intent to develop it or hold and resell.
- New construction of apartment buildings and commercial property – Develop vacant property by constructing apartments or commercial space, which can then be sold or held while you collect rental income.
- Buying and selling notes – Brokerage of privately held commercial real estate property loans, bought and sold for profit.
- Mobile home and RV parks – A variation on residential rental property, which can generate monthly income.
- Industrial properties – These properties can include a range of sizes and functions, which can be defined primarily in terms of “clear height,” or the height of the interior of the building. Possible potential tenants will depend on the clear height of the property.
- Hotels, motels and vacation rentals – Yet another variation on residential rental property, but will likely include more administration and oversight due to the length of the stays and amenities expected by guests.
- Long distance and overseas properties – These properties can fall into a wide range of purposes, but the defining characteristic is that they are outside your metro area and possibly even outside the country.
As you can see, many options are available for potential commercial real estate investments. Some may be better suited to your individual circumstances than others, but one of these top 13 investments could be the perfect fit for you.