How To Make Money In Commercial Real Estate
Valued at US $ 1 trillion in America alone, the commercial real estate market offers endless opportunities to anyone who wishes to generate a lucrative income. With so many ways to profit from commercial real estate, there are a variety of ways to make money through the industry. To get started, take a look at these exciting ways to make money with commercial real estate.
1. Become an investor
One of the easiest and most effective ways to make money with commercial real estate is to team up with limited partnerships that are actively seeking investors. In some cases, an established business may already have a confirmed site and plans finalized, while others will be in the design stages of launching a new development. This means you can choose exactly when and how to get involved in future commercial real estate development and tailor your investments to your needs.
Traditionally, finding the right investors and the right opportunities has been the most difficult part of this process. However, new solutions have greatly simplified this process. For example, Extrance aims to revolutionize the commercial real estate investment market with its exclusive platform and solicitation system. By facilitating connection with potential partners, everyone can take advantage of the opportunity to realize their investment plans.
A real estate investment trust, or REIT, is another way to generate returns from asset ownership. Each trust has a range of business assets and shareholders can generate income, depending on the success of the portfolio and the number of stocks 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 firms and brokers, but some are also publicly traded. This means that you will find them on the stock exchange and be able to invest in them the same way other trusts are businesses. Often times, REITs have lower minimum thresholds than other forms of investing, meaning that a larger population 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 well suited for commercial development or perhaps you have funds to purchase land ready for development?
Again, you’ll need to find the right investors and make sure you have enough funding to complete the project, but if you do, you’ll be able to generate substantial returns once your development is complete.
Is Commercial Real Estate Right For You?
The commercial real estate market offers many types of money making opportunities. As with all investments, however, you will need to do your homework and possibly seek professional financial advice before deciding whether a commercial real estate investment is right for you. With large returns often realized, it’s easy to see why so many people turn to commercial real estate when they want to make a lot of money.