It is a common phenomenon that when the demand for a good or service decreases, the market value of the said product or service is directly correlated. Why would one invest in commercial real estate right now when other commodities are the need of the hour? But smart investors know that this is the time to really invest in those commodities which have a low market value. Like a bouncing ball, the market value might hit the ground hard right now, but it would bounce right back with vigor very soon!
Commercial Real Estate or real estate property of any kind is always considered a great investment but a lot of people don’t opt for this asset as a means of investment. The reason being that it’s much easier to invest in gold, silver or any other commodity because of the simplicity involved in the transaction. Besides, right now it is still possible to trade in other asset classes from home because of coronavirus than to invest in commercial real estate. COVID-19 has forcibly trapped people at homes, but you can still prepare well during isolation to ensure that you make the best investment deals once the lockdown is uplifted.
So, how to get the best commercial real estate deals from trusted sources without leaving your home???
Well, that we will answer in a bit but for now let’s look at some benefits of investing in commercial real estate.
6 Benefits of Investing in Commercial Real Estate
1. Spendable Cash as well as Passive Income
Needless to say that commercial real estate has massive income potential and is one that can generate income while you stay at home! With the present coronavirus situation, commercial real estate investment gives a sense of relief as owners benefit without moving from their homes.
2. Asset Appreciation
During a crisis, all asset valuations go for a toss! But just like a bouncing ball, once a valuation hits the ground, it is bound to go up. While historically real estate usually appreciates, with the current coronavirus situation, all asset classes have seen a decline. So now, one must prepare well to invest in commercial real estate to see its valuation skyrocket in the near future.
3. Tax Benefits – 1031 Exchange
1031 Exchange is a tax benefit that defers tax liability if you invest in commercial real estate. There are certain rules and timelines to adhere to in order to qualify for this benefit, but with the right guidance, one can easily benefit from the 1031 Exchange. There are commercial real estate experts who can help you with acquiring this tax benefit. To know more, connect with an expert on Alumni Alliances.
4. Leverage Debt
A commercial real estate property that you have can be used to leverage debt to buy another real estate asset. So, in effect, you can leverage to increase your net worth!
5. Never Down to Zero
Unlike stock, the value of real estate property can never be zero, so rest assured that you would be able to get value for your property when you resell. These are in extreme cases, especially recession.
6. Triple Net Leases
As opposed to a residential property, where one has to do all the expenses, in commercial real estate property, the lessee will cover all the expenses in relation to beautifying the asset. They may even pay the real estate taxes so as an owner you would only have to pay the mortgage!
Now that you know the benefits of investing in commercial real estate, it’s best to find out where to get the best commercial real estate deals that are from trusted sources and for which you need not leave the comfort of your homes.
The platform has members from one alumni community and because it is vetted, you can rest assured that you will find commercial real estate deals that are from trusted sources. You need not really visit any site during this time but can start the liaising process by talking to people who are a known source. So visit Alumni Alliances today to not only find the best deals in commercial real estate but also jobs, recruiting services, investors, business solution providers, mentors, and influencers.
So to invest or not to invest in commercial real estate?
Let us know through the comments section below! Also, sign up on Alumni Alliances and follow the platform through their Facebook, Instagram and Twitter handle. Don’t forget to bookmark Alumni Insider to read more useful blogs like this! 🙂