Commercial Property Investment
In real estate industry alone, there are a number of nuances that agents need to learn about. However, there comes a new way of investing your cash. Here in Texas, TX (State Only), commercial real estate is booming and becoming undeniably profitable.
While most agents spend their time on real estate, this one is a more specific niche in the market. If you don’t know property types under commercial label, these are buildings used for retail, offices, warehouses, industrial and apartments. There are other commercial properties that are packaged as mixed use which is the combination of apartments, offices and retail.
Huge potential in income is the number one reason why agents should invest in this niche of real estate. According to professionals who have been in the commercial property for a while now, the annual return on top of the investment is ranging from 6% to 12% depending on the market condition and area. This potential income percentage is in fact much higher than the usual real estate deals which only rake in around 1% to 4% of income.
Lessee pays for the expenses of the property. When investing in this type of property, you will come across the term triple-net-leases. In a simpler term, it simply means that if you are the owner of the commercial property you will not pay for the expenses. The only cost you need to shoulder is the mortgage payment. If you have a building and brands like Starbucks rented in one of your locations, whatever they do to maintain their brands is no longer your financial problem. It is theirs to spend on.
Lease terms are more flexible in this type of industry. If you come to think of it, commercial leases are governed by fewer laws. In short, you will have more freedom to customize your terms depending on the agreement between the lessees. If one of your industrial buildings is rented by a huge brand, the contract is much longer (2 years or more). Longer contracts for lease is much better because there is no need for you to look for occupants in a long period of time.
There are many more positive things that you can read about this type of investment. If you have the lingering capital and you want to earn more money without exerting too much effort, commercial property investments are really good considerations. For more information about this investment, please visit this site often.
While some people are talking about the risks of investing in commercial real estate, there are those who are focusing more on the positive side. Yes, investing in Texas, TX (State Only) when it comes to commercial property will make you spend big as an initial investment, the rewards later on is much bigger as well. You definitely have a desire to know more about this subject. This topic is covered by a massive number of online articles. Having said that, the list of authentic sources though is very short. Go to propertycashin.com/texas for updated quality content on this subject.