Commercial Vs. Residential Real Estate & Why We Believe You Should Invest in Multi-Family Properties

Have you been on the fence about what kind of properties you should invest in? We know the struggle well! We used to be in the residential real estate game, but once we took a look at commercial properties, we decided that commercial, multi-family properties were a much better way for us to invest our time, capital, and interests. With the help of mentors, classes, and a world class education, we made the shift into multi-family properties. We have never looked back! And as a result, we would love to share our thoughts on why multi-family investing might be right for you.

Residential

Residential real estate is a pretty easy game to get into. With the number of house buying, flipping, and selling shows at an all time high, you can easily invest in a property and be capable of renting or selling it quickly. Residential real estate fully immerses you in your clients’ day-to-day lives. You must be well versed in your local area and be aware  of the appropriate associations’ rules and laws regarding property care in their area. Residential properties experience higher tenant turnover rates which is great for those involved in the listing and selling processes. But these properties also also require more frequent and involved hands-on maintenance while under lease or ownership. If you are looking to be very involved with a property, this may be a good option for you! Especially if you are someone who enjoys close contact with others’ personal lives. Dealing in residential real estate makes it possible for you to interact with people on a daily basis and can be an incredibly rewarding way to invest in the relationships in your community.  The natural down side with any opportunity is it may require more sweat equity and direct management of the tenants and the property not allowing you time to live your life and get away on those vacations you want.

Commercial

Commercial real estate centers on statistics and profitability. We like to refer to it simply as gaining economies of scale! Upon review of the the property’s history and revenue, you can make market driven decisions that will lead to expansion and higher occupancy. Because property appreciation in this sector is based largely on prior profit and not comparisons to surrounding properties, these professionals must be well-informed regarding the relevant market and influences affecting past and current income. In general, commercial properties tend to experience lower tenant turnover and longer leases than residential properties. This enables greater stability for those involved in property management and upkeep and properties can be better maintained. If you have been in the residential real estate market for a period of time, then moving into the commercial market may be a great move for you. Your work in the residential market will be invaluable when you are looking at commercial properties. You will be able to apply your knowledge of residential real estate to the commercial market and you may even be moved to specialize further as you develop your skill and understanding in commercial real estate. The options and opportunties are truly endless.

If you’re looking to start investing in multifamily property in the Charlotte area, reach out to us through our contact form and let us know how we can help. We are constantly looking at value add properties to invest in and we are always looking for accredited investors to partner with!  We provide a turn key solution where we find and source the property, move it through the acquisition and management process and bring in qualified investors through a SEC legal process.  We provide a hands off, wealth investment strategy for our accredited investors and we are always looking to add to our team!

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