20 likes | 37 Views
Commercial real estate is that property which is only used for business purposes. If the real estate makes money, is rented out, used for investments, or falls into a number of other categories other than being a private residence, it can be considered as a commercial real estate.
E N D
MAKE A REAL INVESTMENT ON COMMERCIAL PROPERTIES!!! WHAT IS CONSIDERED AS A COMMERCIAL PROPERTY? Commercial real estate is that property which is only used for business purposes. If the real estate makes money, is rented out, used for investments, or falls into a number of other categories other than being a private residence, it can be considered as a commercial real estate. INVESTMENT:- The basic rudiments of an investment are cash inflows, outflows, the timing of cash flows, and risk. The ability is to analyze these elements in providing services to investors in commercial real estate. The best example of this sort of investment is a real estate fund. Cash inflows include the following: • Rent • Operating expense recoveries • Fees: Parking, vending, services, etc.
• Proceeds from sale • Tax Benefits • Depreciation • Tax credits (e.g., historical) Cash outflows include: • Initial investment (down payment) • All operating expenses and taxes • Debt service (mortgage payment) • Capital expenses and tenant leasing costs • Costs upon Sale Investment always consists of risk which is dependent on market conditions, current tenants, eviction and the likelihood that they will renew their leases year-over-year. TYPES OF COMMERCIAL PROPERTIES:- Commercial property or real estate is generally divided into six categories: Buildings for offices – This class includes single-tenant properties, small professional office buildings, downtown skyscrapers, and everything in between. Like property builder offices. Restaurant and retail purpose – This class includes sites on highway fronts, single occupant retail buildings, small neighborhood shopping centers, larger centers with grocery store, such Megamart, Easy day and so on even regional and outlet malls. Land – This category involves investment properties on undeveloped, raw, rural land in the way of future development. Miscellaneous – This catch-all category would include any other nonresidential assets such as hotel, hospitality, medical, and self-storage developments, as well as many more. Commercial property let consumers begin their business smoothly. One commercial deal can change your financial life forever. Source URL: https://bit.ly/2LZSiqK