What is considered commercial real estate?

The term usually refers to retail properties, office buildings, shopping centers, hotels, warehouses, manufacturing facilities, apartment complexes – and vacant land that has the potential for development for these types of buildings. In short, almost any kind of real estate except single-family home and single-family lots can be regarded as commercial real estate.

Why purchase Income Property?

With low interest rates and rising real estate prices, rental-property owners have done extremely well the past few years. And many potential buyers are hoping to get on the band wagon, but there is a big difference between buying that house or condo for your self and buying property as an investment. Income property is an investment and your purchase decisions should be based on cold dollars and cents evaluations. Having an advisor like Lynx or HREA can dramatically increase your chance of succeeding and avoiding the potential pitfalls in the business.

Buying income property is not for everyone, just as investing in the Stock Market is not for everyone. Ask yourself these questions: Is this a short term investment? Maybe you’re 65 and are looking for retirement income? Are you committed to the long term? Maybe you’re in your twenties and want to create long term returns and security for your retirement years? Each type of commercial property investment will have positives and negatives and you need to be comfortable with the type of investment and be patient to be successful.

If you choose to purchase income property, the following questions will help clarify your goals: Are you interested in “flipping” a property? That is, purchasing a property to fix up and sell at a profit. Do you want to buy and hold for the appreciation and cash flow? Are you buying for retirement income – a long term investment? Will you be building or diversifying your existing investment portfolio? Other questions you may want to consider ar your risk tolerance level, the amount of cash you have on hand to invest, your borrowing capability. Also what type of property do you have an interest in? Simple single family homes? Duplexes, quads, or small commercial buildings? Or are you ready for apartment buildings, shopping centers, strip malls, or office buildings? The decision to purchase commercial investment property can be a great decision with a huge positive impact on your financial future. Contact one of the professionals here at HREA and we will help you make the right decisions and find the investment that works best for you! We can be reached at (404) 477-2044 or with email at info@MyHREA.com