Hi everyone, Ed Martin from the Commercial wing of the Martin DreamToHOME team here, to remind you that we are available to help with your business or investment property needs Virginia.
For this month’s commercial corner, I have summarized the four different opportunities that you and your friends and family can take advantage of to make money in commercial real estate.
Cashflow – Many commercial real estate properties can be used to generate cashflow. Cashflow can be from rent, such as in a multi-tenant property, parking lot, or self-storage facility, or cashflow can be from producing something on the real estate that generates income – such as agricultural or mined products.
Appreciation – Most commercial real estate properties appreciate over time. The general premise is that real estate once improved and sold can likely appreciate between acquisition date and disposition date. Specific amounts and rates can vary of course.
Tax-Benefits – Some commercial real estate properties, depending upon the investment type, term, or timing bring tax-benefits to the investor. Now this varies of course depending upon property or investor, but in general brings an indirect money-making method through expense avoidance.
Principle Pay-Down – If the commercial real estate is purchased with any form of financing, the principle balance can be paid down by the users of the real estate – either the owner or the rent-paying tenants. This method over time brings benefits to the investor.
Remember, we are here to advise and advocate for you with your business space or income needs!