Maarten De Jeu Shares Four Key Advantages To Investing In Commercial Real Estate
After graduating first in his class with an MBA from the University of Oxford, Maarten De Jeu quickly established himself as an expert in the world of finance, international business, and commercial real estate.
In 2012 he launched SVM Business Advisory, a consulting firm that specializes in real estate investment services.
All clients of SVM Business Advisory benefit from De Jeu’s wealth of industry knowledge.
4 Key Advantages Of Investing In Commercial Real Estate
Anytime you purchase real estate there are two main ways you can make money. The first way is through rental income, and the second way is through property appreciation.
While there are many different economic factors that can influence the value of the property, there are also things you can do as the owner of the property to increase its value.
For instance, installing new lighting and adding a fresh coat of paint are simple renovations that can lead to higher property value in the future.
In this sense, residential real estate and commercial real estate are very similar. However, there are some key advantages that you can only get by investing in commercial real estate.
Key Advantage #1 – Less Competition
Investing in commercial real estate can be a lot more challenging than investing in residential real estate. Because of this, the market is less saturated. Learn more: https://www.chicagobusiness.com/article/20150917/BLOGS03/150919840/bill-clinton-schmoozes-with-chicago-ceos-to-fundraise-for-hillary
With less competition comes the opportunity to make more money!
Key Advantage #2 – Higher Return On Investment
Generally speaking, investing in commercial real estate will yield a higher return on investment than it would if you invested in residential real estate. In some cases, the return on investment is six times higher.
These three things significantly increase your earning potential.
Key Advantage #3 – Better Cash Flow
When you have longer lease periods you will have more consistent cash flow. And with more consistent cash flow comes the opportunity to invest in even more commercial properties.
Most commercial properties come with multi-year lease agreements.
Key Advantage #4 – You Have More Benefits
When you own commercial real estate you are able to enter into a triple net lease agreement with your tenants.
With a triple net lease agreement, the tenants will not only pay rent, but they will also be responsible for paying all real estate taxes, property insurance, and the building maintenance fees.
This type of agreement can only be made in commercial real estate.