Most of the people who are new to Invest in Real Estate industry are approached by advisors and agents who are dealing in residential real estate and from the people who are not having any knowledge on commercial real estate investments and options available in the market and actually what commercial real estate is really all about.
When people came to know about my profession that I am into Real Estate industry, they always used to ask me, Why?
It’s only the acknowledge the most evident reason, the returns on investment which one gets while investing in commercial real estate. Although, I was even quick enough to update them that there are many other reasons and advantages of why anybody should be involved investing in commercial real estate.
Some of the reasons that why one should invest in commercial real estate are as follows:
First one is the Best, which is known as The Concept of Synergy. Synergy is the proposition where you put in the same effort’s, but one gets more Returns on investments. This is actually can happen only in commercial real estate investments. Many deals and investment options you might be interested in will require the same process which is to be followed for all and the same amount of legwork, regardless of how big the property is where you want to put money in, how much the property is going to cost you, what is the best use of that property, and how much return on investment you will get from that particular property.
A Rs. 1.5 Crore property will literally require the same amount of legwork as a Rs. 3 Crore deal! Because of the same reason, I always convince my known ones to think big, and always go for the satisfaction and the best ! Why to deploy the same amount of time and energy on any deal which gives you lower returns on investment, when you can get property with Higher Return on Investment by putting the same amount of time and energy, and Return what you get is 10 – 15 times higher than what that single deal would give?
The second advantage and benefit is leverage on property and how that strength can maximize your return on investment on that particular property. In commercial real estate, you have to keep a check how you can decrease your invested capital while returning the most money to seller. A best way for this is to borrow part of the initial investment and pay a certain percentage of interest on the borrowed money. By doing this, if you calculate the total cost of initial investment will be much lower when you use other people’s money to do initial booking for that particular deal, and it, this will increase your overall return on investment. There are very few businesses that works is this way, and you can definitely use this to get advantage on your returns on Investment.
The third reason why one should do commercial real estate investment is the impact one can have on communities. Creating more and more affordable housing in society, renovating old buildings and large complexes in society so that people would come and would want to live there, finding excellent places for companies and businesses to establish their customer base and they can give jobs in particular community while increasing the economic welfare of locations are all amazing reasons to get entangled into commercial real estate investments! One can really have good reputation and leave a mark in the communities one works in, and everyone will benefit out of this.
The fourth reason is availability of Commercial Real Estate Investment options. There are very large number commercial properties, and other types of properties available for investments, or other ways to create wealth through different means, professionals who work into investment sector, other people’s money to borrow and investment in different tools, and money to be made. There are many options available for everyone in this regularly changing industry and sector. Because of this It actually makes this as an amazing place to work, as there are always a new and different opportunity available in bulk for one to pursue and invest !
The fifth reason includes all the various options you have and can use in commercial real estate options. In commercial real estate you have to solve problem, one has to be very creative in giving offers and what to do and how to use those properties so that they can fetch amazing returns. Commercial Property requires negotiation, which is actually good and help in building relationships with other professionals from different industry too that can lead to relations and lifelong business partnerships, and last but not the least, the chance to create huge wealth and happiness that other people never experience!
There are many other reasons why we should invest some part of our capital into commercial real estate.
Connect: www.heimatadvisory.in
Author: NIKITA DAGAR
