UNDERSTANDING COMMERCIAL MORTGAGES-THE WHY
By Christopher Hills
 WHY?
WHY invest in commercial real estate then? If the loan criteria are tougher, and the deals take longer to close-why not just stick with residential investing? Because, commercial properties are much lower maintenance properly managed. You can rent them out triple net lease and have the customers make all the repairs. You are typically dealing with a large building built very well and not a house with kids. These properties are not used like a residential house-people don’t live there and so the life of the property is extended. And even if you are dealing with a multi-family property where people are living, you have diversified revenue. One apartment complex may have 20 units in it and so if one renter moves out you still have 19 other rents coming in. The commercial mortgage is actually your best friend because we take into account vacancy rates when underwriting the file and make sure that the property still cash flows EVEN with average vacancy rates for the area. You KNOW your return on investment going in and the risk is mitigated. PLUS, you get all the normal benefits of investing in Real Estate:appreciation, but you get to depreciate the asset on your returns, steady money with minimal effort, and a hedge against inflation that is tough to beat.
Commercial real estate investing can be lucrative. If you are a business owner, buying a property and fixing your payments instead of rents that escalate yearly is a smart move. Either way, commercial real estate is a smart choice. Making the right choice on your mortgage can make all the difference between a good investment and a great investment. I hope this helps clarify commercial mortgages some, for more info or assistance, please feel free to call the representative who sent you this report.
WITH RATES AT HISTORICALLY LOW LEVELS and the ECONOMY POISED FOR
IMPROVEMENT there has NEVER been a better time to buy commercial property! I wish you the best.
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About the Author
| Christopher Hills, 23 Venures LLC
197 Main Street
Milford, MA 01757
508-469-4220
Contact Author: request info
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