Understanding Commercial Investment
Franchises
Franchise are another favorite type of commercial investment. Many low-cost franchises require expenditures of $10,000 or less, which can be an excellent way to get experience in the commercial investment realm with a relatively small amount of initial capital.
Sandwich Lease
A sandwich lease is a leasing arrangement where a real estate investor leases the property from the owner and then leases the same property to another party who is looking to own a home in the future. In other words, the investor is both a lessee and a lessor.
Buying a business
The buyer typically takes over full ownership of the business. The largest advantage is having an existing blueprint that can include important factors like an established customer base, defined operating expenses, and fully trained employees. Regardless of business type, almost any kind of business could be bought or sold.
Understand market cycles
Nothing lasts forever. The health of the economy, unemployment rate, and GDP all directly correlate to the profitability of commercial real estate.
Demand
One of the most important things to know before investing in commercial real estate is that every market is different. When you invest, you are investing in a specific geographic area that has its own unique supply and demand.