How can commercial property give you a profit? Start here.
Commercial property might need a larger down payment than a house to invest in, but if you are in a position where you can invest in commercial property, it is worth considering doing so. While it is not financial advice, commercial property does have a promising outlook concerning long-term and even short-term profit. Consider these four ways to profit from commercial property below.
Why Invest in Physical Commercial Property?
While it is possible to invest in shares of commercial property through stocks, ETFs, and other means, there is something valuable about having a tangible asset. When you invest in physical commercial property, there is a sense of stability in owning actual land and whatever structures are on it.
Commercial property has less competition than residential property, and it offers more stable long-term growth, especially if you have commercial tenants. It is a larger investment, but it is a more secure investment.
Four Ways to Profit from Commercial Property Investing
Flip and Sell
One method to profit from commercial property is to flip and sell it. You could purchase derelict commercial property, renovate it, and put it back on the market at a price adjusted for the improvements. If you go this route, take care to make quality improvements rather than haphazard ones that the new owner will have to redo.
Rent Out
You could also make any renovations necessary and rent out the property long-term to tenants. Tenants might be small business owners who need office space, retail space, storage, or a workshop. If you rent out your commercial premises, you can slowly make up the cost of the mortgage and hire a property manager to make everything run smoothly.
Use It as Your Business Location
Alternatively, you could use the site for your own business. Business owners can choose between renting or buying their own property, and having a business space can be necessary when working from home isn’t an option anymore.
Hold Until It Appreciates
Lastly, you could hold the property and do practically nothing and just wait for it to appreciate after many years. This option could be best if you purchase commercial land.
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.