If you own 2 or 3 investment properties and are trying to figure out how to replace the income from your job, you know that it will take a long time and purchasing many properties to earn your financial freedom. Buying commercial property can dramatically fast track your financial goals! It certainly did that for me. One commercial deal can change your life. The first million dollar commercial investment property allowed me to pay for my daughter's college education. The second one I did, paid for my wife's early retirement. In order to achieve those scales buying small residential, you basically have to be a deal junkie running on a hamster wheel!
These are the four things you need to know about what's different from residential when buying commercial investment property. But before we get into that, what is the difference in terminology from commercial and residential real estate? Residential real estate is anything that is single family through four family. Anything 5 units residential and above is considered commercial. Anything that has a use, even a partial use of anything besides residential is considered commercial real estate. For example, a property with a retail store front and two residential apartments on top (a typical mixed use building), would be considered commercial, even though there are less than 5 residential units. Ok, now for the four biggest things to consider between the two real estate classes:
14 Comments
12/22/2021 02:36:26 am
Thanks for pointing out that commercial properties are usually financed by community banks and credit unions. I would imagine that any entrepreneur would want to avoid incidents that can affect their business. I think they should look for commercial facilities that can allow them to operate in a safe and appealing environment.
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Thanks for pointing out that appraisers would be able to evaluate a commercial property and find its net operating income to determine valuation. I can imagine how business appraisers would help those who plan to invest in houses and turn them into vacation rentals in the future. It would definitely help them make the right decisions such as picking those in the right location that can gain lots of profits in the future.
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2/11/2022 02:55:16 am
Thanks for sharing that when looking to buy a commercial property, it is important that we ensure to have an appraisal done. In doing so, we can ensure that the property is good. I will definitely be mindful when looking to have a property bought.
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6/2/2022 12:48:41 pm
Thank you for talking about the appraisals of a commercial property. I've been wondering what I should know about buying a commercial building. I'm planning on starting up a salon, so I think knowing about the process will help me to be more prepared.
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8/17/2022 03:04:49 am
I never took into account the fact that it would be a good idea to have a good relationship with the bank you plan to lend from, especially when you found a great one. I can imagine how an investment property mortgage lender should definitely be chosen well to ensure that you get the most out of your savings. It will definitely help the owner to have more chances of getting a higher approval that would get them better properties to buy.
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8/24/2022 02:54:06 am
Thanks for sharing this post. I love reading it.
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3/11/2023 09:13:34 am
The second one I did, paid for my wife's early retirement. In order to achieve those scales buying small residential, you basically have to be a deal junkie running on a hamster wheel! Thank you for the beautiful post!
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3/11/2023 03:20:25 pm
With our business model as a developer and investor, we usually refinance our properties every Five years to pull cash out and redeploy into buying more deals, I truly appreciate your great post!
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3/18/2023 02:22:20 pm
These are the four things you need to know about what's different from residential when buying commercial investment property. Thank you, amazing post!
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4/17/2023 07:14:56 am
Your blog post on residential appraisals was well-written and informative.
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6/29/2023 12:10:51 pm
With our plan of action as an engineer and financial backer, we as a rule renegotiate our properties like clockwork to haul cash out and redeploy into purchasing more arrangements, I genuinely value your extraordinary post!
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6/29/2023 02:52:20 pm
Whenever you are buying commercial property, you will always want to have professional third party environmental due diligence done. So always ask if the owner of the property is in possession of a Phase I Environmental assessment. I’m so thankful for your helpful post!
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