Many who are looking to diversify their portfolios are discovering the benefits of investing in real estate. While it is common for those new to the Ohio real estate world to consider residential properties, more experts are encouraging investors to look at the flexibility and stability of commercial real estate. In addition to tenants who typically remain in place longer than residential tenants, commercial real estate offers multiple options for getting started with investing.
An owner of commercial property can expect to have lower tenant turnover and longer leases, which means steady income for a longer period of time. An investor also has options for purchasing properties that meet the buyer’s level of experience and financing. For example, a class A property may be more expensive because it is newer and in need of fewer repairs. A class C property may be affordable but require extensive renovations and some creativity in attracting tenants.
Someone looking to invest in commercial real estate can ease into the process by co-investing with several partners. This allows the partners to share the work and the profits. Some investors join real estate investment trusts, also called REITs, which require little more than a financial contribution to obtain a share in the property.
A wide variety of commercial properties may be on the market at any given time. Investors may wish to look beyond traditional office buildings or storefronts. For example, car washes, laundromats and storage buildings require little effort to maintain and can be highly profitable if well marketed.
No matter which area of commercial real estate an investor wishes to explore, he or she is certain to meet with Ohio and federal laws. Having a legal advocate to guide one through the complications of acquiring investment properties can ease the stress and frustration. A skilled attorney can assist with the purchase and sale of a property as well as issues related to zoning, financing and construction.