CRE Investments: The Best Starter Properties
Starting off your career as a commercial real estate investor is exciting. There are CRE investments all around and the revenue potential is very high. However, jumping right into buying a hotel may not be in the cards, and some properties may require more money than banks are willing to lend. We have compiled a short list if the best CRE investments for people who are just getting started in the field.
Fix & Flip CRE Investments
Purchasing homes at below market value is a great place to start. These homes usually need some renovation work, in order to bring the properties up to code and make them appealing to potential buyers. By putting in some work, these houses will sell quickly, and yield a decent profit. Fix and flip homes make great CRE investments, and give new investors a good introduction to buying and selling within a budget.
Multifamily Rentals Make Great Starter Properties
While fix and flip projects can generate great one-time profits, multifamily rentals can create a constant stream of revenue, which can go toward investing in larger properties. Purchasing a duplex or a triplex, or even converting a decent-sized house into multiple units, can bring in revenue which can be portioned off to pay mortgage installments and taxes, while the other rent checks go into the bank or toward other CRE investments. The financing needed is similar to fix and flip projects, but multifamily rentals are managed differently, and even offer some tax benefits if investors live in once of the units.
Retail spaces make great starter properties. The purchase price is usually a big higher than residential properties, but the revenue generated by renting out these retail investments makes it all worthwhile. Additionally, some retail spaces have residential space above or below, which can multiply the revenue streams. Retail spaces may require some additional financing to bring them up to commercial code, but they are typically need lower maintenance than residential CRE investments.
If you are a new investor, and have any CRE investments lined up, call CounselPro Lending at 1-888-292-3322. We work with new CRE investors to get them the financing they need to buy and renovate properties. Our financing solutions are affordable, with low rates and customized terms to fit your budget. Give us a call today, and our team will work with your directly to provide the best strategies and solutions to launch your career as a commercial real estate investor.