Commercial real estate can be a lucrative market to get into
Valued at $1 trillion U.S. Dollars in America alone, the commercial real estate market offers endless opportunities for anyone who wants to make lucrative returns. With so many ways to leverage commercial real estate, there are a variety of ways that you can make money from the industry. To get started, take a look at these exciting ways you can make serious money from commercial real estate.
1. Become an Investor
One of the simplest and most effective ways to make money from commercial real estate is to team up with limited partnerships who are actively looking for investors. In some instances, an established company may already have a site confirmed and plans finalized, whereas others will be in the concept stages of launching a new development. This means you can choose exactly when and how to get involved with an upcoming commercial real estate development and tailor your investments to suit your needs.
Traditionally, finding the right investors and opportunity was the hardest part of this process. However, new solutions have simplified this process dramatically. For example, Extrance aims to revolutionize the commercial real estate investment market with its exclusive Platform and Solicitation System. By making it easy to connect with potential partners, everyone can benefit from the chance to realize their investment plans.
A real estate investment trust, or REIT, is another way to generate returns from asset ownership. Each trust owns a range of commercial property and shareholders can generate income, based on how successful the portfolio is and how many shares they own. As many trusts diversify their portfolios with different types of commercial properties, you can manage risk by deciding which REIT matches your risk tolerance.
REITs are available privately, through investment companies and brokers, but some are also traded publicly. This means you’ll find them on the stock market and can invest in them in the same way as other trusts are companies. Often, REITs have lower minimum thresholds than other forms of investment, which means a wider demographic of people can invest in the commercial real estate market.
3. Attract Investors
If you want to take a hands-on approach and make money from commercial real estate, why not find your own site and attract investors to help you develop it? Perhaps you already have land that is well-suited to a commercial development or maybe you have funds to purchase land that’s ready to be developed?
Again, you’ll need to find the right investors and ensure you have enough funding to complete the project but, if you do, you can make substantial returns when your development is finished.
Is Commercial Real Estate Right for You?
The commercial real estate market offers numerous different types of money-making opportunities. Like all investments, however, you’ll need to do your homework and possibly seek professional financial advice before you decide whether a commercial real estate investment is right for you. With large returns often realized, it’s easy to see why so many people gravitate to commercial real estate when they want to make serious money.