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:
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