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Investing In Commercial Real Estate

Investing In Commercial Real Estate

For starters, commercial real estate investing is very similar to residential real estate investing.  The math is the same, the numbers are just larger.  In some cases much larger.  In commercial real estate you need to focus on the numbers. You need to know the income and expenses associated with your commercial property, and you need to do a lot of due diligence work upfront.  Small mistakes become magnified in the world of commercial property.  Imagine that you forgot to include an expense like common area maintenance when considering a strip mall purchase.  Well that little error might flip your cash flow to negative, and cause you to lose your entire investment.

On a good note, you can buy commercial real estate with your self-directed Roth IRA.  This would make all of your profits tax free.  There is no better way to invest for retirement than to do so in a tax free cash cow.  To the best of my knowledge, nothing combines these two ideas as well as a self-directed Roth IRA and commercial real estate investments.

Commercial real estate offers an exciting array of investment options.  You can invest in commercial multi-family apartment complexes, self-storage units, strip malls, retail malls, specialty outlets, retail outlets, health care facilities, hotels, office buildings, and warehouse properties.  Each of these broad commercial property types can be sub-divided into more specific market segments.  In short, there are a lot of commercial real estate investment options to choose from.  It is just a matter of finding the property type that is right for you.  There is even a commercial real estate investment class where the tenant is responsible for all maintenance and taxes.  That special category is called triple net or NNN real estate.

At the American Real Estate Investors Academy, we offer several way to learn how to invest in commercial real estate.  You can take advantage of our academic track, and sign up for our accredited real estate education courses.   These courses are self-paced, and you can choose the classes that will further your education.  You can also attend a live training or take a home study course from one of America’s best known real estate gurus.   If you prefer to have you hand held as you enter the world of commercial real estate, you can look into our apprentice program.  Lastly, if you want someone to do all of the heavy lifting for you, then you can apply through our “done for you” program.

To start your commercial real estate education, I suggest you click the link to the next article.  The title of this article is investing in commercial multi-family real estate.