Commercial property management is a lucrative opportunity that more and more real estate investors are taking advantage of these days. The property market has always provided a great return for investors looking to capitalize on an appreciable asset with excellent revenue-generating potential. Yet the commercial marketplace has typically remained under-utilized by the vast majority of owners in the real estate space.
Private Money Lenders
One of the best things that have ever happened to real estate investors is the shakeup in the banking industry that led to the introduction of private money lenders. These outfits are able to create their own lending guidelines and hasten the pace of funding your venture in the process. Rather than relying on a brick-and-mortar financial institution to run your application up the chain of command, a private money lender like Pacific Private Money is able to make a fast decision on your loan application and get the capital funded to your account in rapid time.
Pacific Private Money operates in a short time frame because the firm has been working with investors—primarily in the real estate space—for many years. They know what to look for in an investment and can make well-informed judgment calls on a case-by-case basis (see more at pacificprivatemoney.com).
You see, when a lender provides you with funding for a real estate or other purchase, they are really making an investment in you and your future. A lender provides you with the startup funding required to make a purchase and then the onus of building great cash flow that can create a profit for your own needs on top of the repayment burden each month falls to you.
Lenders are in the business of investigating people as a whole package. This is why private money and hard money lenders are more flexible in their practices. They are able to make judgment calls that incorporate your credit score and borrowing history without relying on these numbers as a singular guide. The entire process of funding a loan with the help of a private lender is seamless and far less daunting than with other options in the lending arena.
Commercial Real Estate
Commercial real estate is different from its residential cousin. This may play a role in any particular investor’s ability or inability to secure funding through traditional sources. Many banks may be hesitant to go through the entire process of underwriting a loan for this purpose because the work involved in gaining profitability in the commercial space is a different kind of challenge. This doesn’t mean that it isn’t worth it as an investor, however.
In the commercial space, there is often less turnover among clients—if you’ve done your homework and selected a prime location—and the default potential is different as well. In a residential property, families have to make routine financial decisions about rent, bills, and other expenses. Yet in commercial real estate, businesses often prioritize the rent costs above other areas because they know that there is really no leeway here between landlord and renter. These renters are in the business of making money, and so are you as the property owner.
Likewise, commercial properties often see less wear and tear on the interior and exterior fixtures and fittings. This is because the space isn’t designed for living, and so the routine damages that are introduced simply through the process of occupying a space are mitigated almost entirely.
Getting into commercial real estate is a great option for many property investors. With a partner like PPM and St. Investments company, making this leap can be far easier and much more lucrative.