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Zhi Finance » Commercial Real Estate: Huge Profits

Commercial Real Estate: Huge Profits

Real estate is often referred to as the safest route to investment. In fact, with a proper valuation of real estate (and its true value), real estate investing can be lucrative. This is one of the reasons why some people make real estate investing their full time job. Discussions about real estate generally focus on residential real estate; commercial real estate seems to be relegated to the back burner. However, commercial real estate is also a good option for investing in real estate.

Commercial real estate includes many different types of properties. Most people associate commercial real estate with office buildings or factory/industrial units. However, this is not all there is to commercial real estate. There is much more to commercial real estate. Health care centers, retail structures and warehouses are all good examples of commercial real estate. Even residential properties like condominiums (or any property consisting of more than four residential units) are considered commercial real estate. In fact, this type of commercial real estate is in high demand.

So, is commercial real estate really profitable? Well, if it wasn’t profitable, I wouldn’t be writing about commercial real estate at all. So, commercial real estate is definitely profitable. The only problem with commercial real estate is that it’s a little difficult to recognize the opportunity compared to residential real estate. However, the profits in commercial real estate can be really big (much bigger, in fact, than you would expect from the same percentage of residential real estate). You can use commercial real estate to resell after appreciation, or to rent to, say, a retailer. In fact, the development of commercial real estate is seen as the first sign of residential real estate growth. Once you know that significant commercial growth is possible in the area (whether due to tax breaks or otherwise), you should start evaluating the potential for commercial real estate price appreciation and then make a quick move (once you find a good deal). And, you must really work to get a good deal. If you find commercial real estate, such as land, that is available in large chunks but too expensive for you, you might consider forming a small group of investors (and your friends) and buying together (and splitting the profits later). In some cases, for example, when a retail boom is expected in an area, you may find it profitable to buy a property that you can convert into a warehouse and rent to small businesses.

Thus, commercial real estate presents plenty of investment opportunities; you just need to take advantage of it.