An In-Depth Look – Commercial & Residential Real Estate Investments

Commercial and residential real estate investments can be quite complicated, especially when the need for a mortgage comes into the picture. There is so much paperwork that needs to be completed and payment requirements can cause investors to become easily frustrated and/or discouraged.

Although investing in real estate can always a wise investment, it’s not wise to go it alone, especially if you’re hoping it to make a profit or generate revenue. This is where a financial mortgage broker can come in extremely handy. They can assess your wants and goals and advise you of your options and assist you with tremendous amount of paperwork that is involved, as well as educate you on expected costs, so you won’t be caught off guard.

Commercial Real Estate vs. Residential Real Estate

Depending on your objectives and goals the advantages can differ greatly. We’ve had an in-depth look at commercial and residential real estate and have prepared an in-depth advantageous comparison below.

Commercial Real Estate Investments

Residential Real Estate Investments

Longer termed leases (typically 3 – 5 years)
Tenants will pay more rent equivalent to higher net revenue
Tenants also cover more of your insurance, management and tax expenses
Tenants can be locked out quickly for non-payment
The buyer is not under as much speculation, greater emphasis on leases, tenants building quality and revenue generation potential

Easy to learn about
Single-family homes can be more affordable
Single-family homes can be a better-quality property
Most often don’t require a huge down payment
Numerous write-offs on your income tax

Based on the real estate comparison above, it’s like that you as an investor now have a lot of question surrounding your purchase. Consider which of the real estate types suit your long-term goals and do your research. This will help you to be prepared to generate the revenue you’re hoping for with your real estate investment.

Looking for answers now? A mortgage broker can give you the information you need when you need it and help you make a smart investment. Contact the team at AKAL Mortgage and build for your future today.

When we say Yes, we stand behind our promise!