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You likely know that investing in commercial real estate can be a great way to build your wealth. However, if you are like a lot of people, getting started can seem intimidating and confusing. Fortunately, it doesn’t have to be. Once you understand the basics, you can get started making investments in commercial properties.

Types of Commercial Properties

You may be surprised to learn that most types of investment properties are considered commercial. This is because you are buying them for business purposes, even if the property itself is residential. These are the key types of commercial properties:

  • Offices: These workspaces are very flexible and quite varied. They can be small, low-rise buildings, large skyscrapers, or anything in between. Some are multiunit whereas others are only intended for one business.
  • Residential: Rental properties are considered commercial property. You may invest in an apartment building, for example. Additionally, you could consider investing in a short-term rental property.
  • Retail: Unsurprisingly, retail spaces are considered to be commercial. These often get premium rents based on their location. A well-trafficked area can be a goldmine.
  • Industrial: These are properties such as factories and warehouses. Location is typically less important than space and appropriate zoning.

Ways To Make Money

One of the great parts about investing in real estate is that you can earn money in multiple ways. First, the property itself has an intrinsic value that can appreciate along with the market. Second, you can improve the value of the property through renovations. Finally, you can earn money from renting the property to tenants. There are other ways to earn income, but those are the big three.

How To Invest in Real Estate

The simplest way to invest in a commercial property is to buy it with cash. If you have a lot of liquidity, this can be a great option. However, most investors do not have that much money lying around. Plus, financing can help you to get more for your money.

Getting a loan can be an excellent way to buy property. You can spread out the cost and potentially build a bigger portfolio more quickly. There are lots of loan options including conventional mortgages, hard money loans, private lending, and government-backed loans.

Alternatively, you may consider investing in a real estate investment trust. This pools money from multiple investors to buy portfolio properties.

Get Started

Learn more about commercial real estate investing today but contacting WHW Capital. Our team offers a wide range of commercial real estate financing solutions to help you build your portfolio and generate revenue.