HomeVestors Knows How Profitable Commercial Properties Can Be

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Commercial property, while riskier, equates to extremely high profits if located in a profitable section of town.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that commercial real estate investing may seem a little intimidating for small scale or beginner investors and there are quite a few good reasons for this. It is a much riskier kind of venture than investing in single-family units. To begin with, commercial properties are much more expensive and hence funding is difficult to obtain. In addition, there are more responsibilities involved in managing commercial properties and the potential to get sued is a lot higher. These risks however, are dwarfed in comparison with their potential returns and numerous tax exemptions. An investor, who has been in the business for a while and has accumulated an appreciable amount of revenue, may consider this lucrative investment. Use the following guidelines to make the whole venture considerably easier.

The first thing to take into account when considering commercial real estate investing is financing. Besides ensuring that one has the financial and credit backing to qualify for a loan to purchase commercial property, an investor should research the property for qualities that would improve the chances of the loan being approved. Lenders who fund the purchase of such properties would want to be assured that it already generates cash flow as a means of guaranteeing that an investor would be able to make their payments.

Other things an investor would have to look out for in ensuring that a piece of commercial property is going to be not just profitable, but manageable as well, include its’ vacancy rate and location. A good commercial investment property needs to have a low vacancy rate. The tenants should be reliable businesses or individuals, who pay their rents on time. This means the delinquency and eviction rates would have to be extremely low. The property would also be the type that is so popular among the public that it continues to succeed. A good piece of commercial property has to be well located and in a part of town that the average person is comfortable living and doing business in.

Success in commercial real estate investing really all comes down to the ability of an investor to find property that has potential. This means the property must generate cash flow, enough to keep the lender’s payments coming in while an investor gets something in their pocket at the end of each month. An investor with leverage potential, who takes the time to research the market and locate property with potential, sets themselves up for commercial real estate success.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties. Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community. In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction. For more information, visit www.HomeVestors.com.

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