We all know that investing in commercial real estate properties is rewarding, both in terms of finances and personally. For almost all businessmen and entrepreneurs, the main aim of investing in commercial real estate property is to build wealth and security that will help in further growing portfolio and will passed down to the next generations. Besides, commercial real estate properties also provide lots of tax benefits for investors.
Wealth Builders Capital Investments INC is a privately held commercial property investment company based in Arizona which is established to buy, lease and sell commercial real estate properties to build wealth by the process of syndication across various commercial property types and markets across the U.S. The team working in this company focuses on passive commercial real estate investing and consistent returns for investors. Having a working experience of 50 years in commercial real estate, this company aims to build long-term wealth.
Here Are Some Benefits of Investing In Commercial Real Estate Properties-
- High Potential Income
One of the biggest benefits of investing in commercial real estate property is to provide high potential income. Mainly, commercial properties have a higher return on investment, which is between 5-12% compared to residential properties, which is about 4%. Hence, as an investor, if you want to have a high return on investment, go for commercial real estate properties.
- Have Longer Leases
The main thing about commercial real estate property is the attractive length of leasing contracts. If you see, residential properties have leases for one year while commercial leasing contracts are set for 30-35 years or more. These longer lease opportunities bring about good returns and have monthly cash flows to investors.
- Good Amount of Cash Flow-
Commercial real estate investing will have one clear benefit- a consistent flow of income. Remember, in commercial real estate property, tenants are businessmen and need a commercial property for business purposes. Hence, rental payments are steady, and investors can get a reliable monthly income. Even some commercial properties have more than 1 unit that results in multiple streams of income.
- Have Better Tax Benefits
One of the best things with commercial real estate investment is to better tax benefits. Investors can invest in these commercial properties using the IRA and can take benefits of depreciation. Hence, if you want to get tax benefits, do invest in commercial properties.
- Tenants Pay Property Expenses
In some lease events, tenants will also pay for operating expenses on commercial properties. It is mainly called as Triple Net lease or NNN lease. As per this lease, a lessee should pay the building’s real estate taxes, maintenance costs, and property insurance apart from monthly rents.
- Lower Vacancy Risk
Another benefit is that commercial real estate has lower vacancy risk, with leases spread over several properties. Mainly, vacancy rates vary from 10-15% and can be leased within 2-4 months.
These are some of the benefits of investing in commercial real estate properties. Make you choose a profitable property before investing.