Real estate remains one of the smartest investments around. Certainly other sectors can bring a greater and faster return compared to buying and selling property, but there is definitely something satisfying and more permanent about it.

Newer communities have room to grow, so there is always undeveloped land. Even older areas with no more new property still go through regular changes, as older buildings make way for exciting new ventures. There are opportunities to speculate on whether a neighborhood is going to boom or bust, and how long to hold on.

Commercial real estate investing is a smart way to have a role in a community’s future, and also can be potentially lucrative if you connect with quality tenants who. You can get involved in any construction or renovation activity, or at least find some talented people to take care of this.

Investment opportunities can be everything from warehouses to retail spaces to mixed-use properties.

Those considering getting into commercial real estate investing generally face four risk levels. These include:

• This is the smartest, safest path with the lowest risk. Properties are already established with predictable revenue in a location that customers are already familiar with and patronized regularly.

• Core-plus. This offers the stability of Core, but with room to grow, such as the possibility of an expansion or smaller-scale upgrade in the near future. Either of these could be solid parts of a commercial real estate investing portfolio.

• Value-added. In this case, there is potential but some obstacles in getting there, such as the need to stabilize leases or invest in a more major expansion. Patience is key here as well, as most of the payoff will take place in the long-term, whether you hang onto it or sell for much more than you paid.

• Opportunism. This strategy has the highest risk and requires the most optimism. It’s essentially not just gambling on the potential of the property but the future growth of surrounding businesses and the local economy.

For more information on financing your commercial real estate investments, contact Bull Market Capital: Business Funding Solutions.