When you’ve got capital to invest and the stock market is just not going to cut it for you and your goals, consider speaking with commercial real estate experts. Building your portfolio with commercial real estate is an excellent guard against inflation, and is much lower risk than the ever-fluctuating stock market. Here is some advice from commercial real estate experts on how to make the most of your investment by choosing commercial real estate:
1. Create balance and diversify your risk.
Without the wild fluctuations of the stock market, commercial real estate can add solid stability to your portfolio. The options for investment are extremely diverse, from the security of a strip mall, to the endless flexibility of undeveloped land. And you don’t even need a great deal of capital to get started. You can invest in commercial real estate with as little as $15,000-$20,000 these days, which opens doors to more new investors than ever before.
2. Real estate experts advise diversifying your portfolio.
Commercial real estate is a fantastic investment, but it should be considered a long-term benefit to your portfolio. Experts suggest that your investments include a variety of more liquid assets as well to bring balance and flexibility to your assets.
3. Diversify geographically.
Unlike stocks, real estate can vary tremendously in value based on the market it is located in. Being willing to invest in property in different places around the country can be an excellent diversifying technique. If you are not able to get eyes on your property at least a few times a year, hiring a property manager to protect your investment will be the best choice.
4. Consider syndication.
Syndication is simply a group of investors pooling their resources to invest in a property that they couldn’t invest in alone. There are many potential advantages to syndication, such as opening the door to more lucrative opportunities, building business partnerships, and teaming up with other investors who share similar goals and passions to be a part of something bigger than yourselves.
5. Take advantage of long-term leases.
Real estate experts agree that the cash flow from a multi-year lease on a commercial property will be an excellent source of stable investment income. This is a huge advantage of commercial real estate over residential, as you can rely on a longer-term source of income as a return on your investment.
If you’d like help investing in commercial real estate, please contact us today! We would love to speak with you.