Have you ever thought about switching from residential to commercial real estate investing? Although residential and commercial properties both have proven to be excellent and profitable investments, commercial real estate investing might be a better option for property investors who are willing to undertake a large venture.
Depending on where you live (Dallas and Houston real estate investing market, for example) and your financial situation, investing in commercial properties can prove quite lucrative. Thus, if you’re currently investing in residential real estate properties, here are some of the best reasons why you should consider switching to commercial real estate investing.
Commercial Real Estate Investing — Easier to Obtain Large Sum of Capital
To start investing in commercial properties, you’ll definitely need a large sum of capital. In residential real estate investing, property investors can only obtain money from individual investors such as hard money lenders and private money lenders as well as other traditional methods of financing. Aside from these financing options, there are not many ways for residential properties investors to receive even a small amount of capital.
On the other hand, obtaining a large sum of capital in commercial real estate investing is much easier as there are many financing options to choose from. As a commercial real estate investor, not only do you have the ability to raise capital by using traditional financing options, but you can also use the help of hedge funds, investment groups, and private equity firms. Commercial property investors can also pool capital and have access to more financing to purchase the investment property.