Commercial real estate can be defined as any piece of real property that is held for income-producing purposes.
Whether it is a building leased out to a restaurant so that it can feed its hungry customers, or an apartment building providing housing for its residents that are looking for somewhere they can call home, its intended purpose is to collect income from tenants or other users for profit.
Whether you are personally invested in commercial real estate or not, it plays a role in your life every day. From the office building you work into the corner store where you fill up your gas tank and grab a pack of sunflower seeds, we come in contact with commercial real estate on a daily basis. It seems like something we should be somewhat familiar with, right?
If we can become more familiar and comfortable with it, we can then begin thinking about ways that we can harness it to make our money work for us and generate income.
When making the decision to invest in commercial real estate, it is important to know the different ways that you can invest. Whether you are investing through private equity, debt, REITs (we will talk more about these and the different types in the future), or functioning as a sponsor on syndication deals--there are pros and cons to each that are worth looking into and fully understanding before jumping in.
Over the next several weeks, we will delve deeper into all of these as well as the different types of commercial real estate. As always, please reach out to me with all your real estate needs and questions.
Matt Moreland, Realtor® is a real estate agent serving the Lubbock, Texas, and the South Plains. After graduating with a Bachelor of Business Administration in Finance with a concentration in real estate from Texas Tech University, he began practicing real estate full time at McDougal Realtors in Lubbock, Texas. Matt enjoys spending time with his wife and their dog. Some of his hobbies include investing in real estate, elk hunting, backpacking, barbecuing, and playing guitar. To schedule a commitment-free consultation please call 469-744-3610 or fill out this form to get started.