Return on Investment (ROI) is the buzzword of any type of investment. In today’s financial world ROI for your bank account is minimal, if at all. Some put their money into a savings account, cd or bond; others buy residential homes or commercial real estate. With the global investment market still in turmoil, the later of those investment vehicles are a tangible way to get a much higher return on your investment dollars.
Why are the returns greater? If you are making a minimal percentage on your savings, and CD’s, and your bonds are fluctuating due to market conditions; real estate (commercial specifically) is a way to put that money to work. For the past 20 years commercial real estate investments have outperformed the S & P 500 index! For generally a 20% down payment, (slightly more if you are an overseas buyer-but, YES you can buy too and get some help in financing!) you build your net worth, experience cash flow and reap the rewards of positive cash on cash returns.
Although this is considered an illiquid investment, the positive benefits financially include depreciation and tax deductions. These vehicles let you reap the benefits of increased cash flow. Upon the future sale of this investment, you can utilize a 1031 exchange so any capital gains can be pushed to a later date.
There are many types of properties to invest in and different ways to do the investing. Purchasing a property outright gives you the ability to manage (or hire someone like me) to do the managing for you. You would direct the operations, maintenance and maybe improvements to the property. However some utilize REIT (real estate investment trusts), you become a shareholder in the property and you should receive a dividend based on the shares you buy. Some people even get their own small group together and create their own investment group in order to invest in commercial real estate.
Let me help you find the right real estate investment for your needs. FBX Commercial, Inc. has the ability to help you locate the right investment, help you negotiate the deal and be able to help manage the property. Call Trish Walden, CCIM, BROKER at 321-277-6429 to meet and discuss investing in commercial real estate.