Commercial real estate is a fascinating business that many real estate investors want to be involved in. There are dozens of ways investors can be profitable, but these 25 are some of the best:
Types of Properties
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- Raw land: raw land does not usually bring in cash flow, but can appreciate in value and be sold for a profit
- Farm land: in addition to land appreciation, farm land can bring in revenue from the products grown
- Natural resource properties: property appreciation as well as providing income from extracting resources such as oil or minerals
- Industrial properties: renting out properties such as warehouses, manufacturing facilities, and other industrial properties to corporations that need factory or storage space
- Office spaces: renting office space to businesses and firms
- Hotels or motels: providing short-term accommodations to travelers
- Apartments: renting out living space to consistently bring in large cash flows
- Vacation rentals: provide a more exotic alternative to traditional accommodations at a higher price
- International real estate: investing overseas allowing expansion to other lucrative deals abroad
- Residential rental properties: renting out properties such as twin homes, duplexes, and single-family homes
Investing Strategies
- Flips: finding properties at a discount and selling them to investors or contractors
- Fix and Flips: renovating commercial real estate properties and selling to investors or end buyers
- Buy-N-Holds: buying properties and holding them as rentals or for property appreciation
- Turn-Keys: similar to fix and flips, but selling primarily to investors
- Leases: many businesses would rather lease than own for tax reasons and are willing to pay for it
- Lease options: leasing with an option to purchase the property at a specified date and price
- Construction: build structures and sell to investors or end buyers
- Buyer financing: providing funds for real estate buyers to be repaid with interest
- Seller financing: providing funds for sellers to be repaid with interest
- Purchase REOs: properties typically owned by banks that can be bought at steep discounts and sold to end buyers
- Foreclosure properties: purchase properties at a discount before they are seized by local government agencies for non-payment
- Short sales: purchasing properties from banks that want to avoid hassle and costs of foreclosures
- Wholesaling: similar to flips but assigns the contract to an investor or end buyer rather than directly buying and selling the property
- Partnerships: two or more parties that purchase the property together
- Consultations: providing consultations in exchange for a percentage of the profit or recurring monthly income
There are many types of commercial real estate deals to invest in and even more strategies to use to buy and sell. Whichever types or methods are chosen, massive profits come to those who build a great investment strategy and stick to it.