Here’s an interesting article from RealEstateJournal.com, titled "Investors Considering Retirement Opt for Property Investments". It talks about how more and more retirees are looking to Commercial Real Estate Investments to build up their nest egg, and have something to leave to their children. Here’s a quick excerpt.
For one thing, commercial real estate delivers regular income — whether from rent checks or dividends from a real-estate investment trust, or REIT. And the sector has traditionally kept pace with inflation and provided "sufficient risk-adjusted returns," says Grant Conness, a financial adviser at 1031 Alternatives Group, a division of Costa Financial Securities Inc. in Hollywood, Fla.
Indeed, while the residential housing market is struggling, commercial real estate is showing solid fundamentals in many markets — with occupancies high, increasing rent growth and supply under control.
On top of that, commercial real estate has gotten increasingly sophisticated and transparent as an investment vehicle in the past 20 years. In part, that’s because of the emergence of the market for REITs. These publicly traded companies invest in real estate and pay out 90% of their income as dividends to shareholders.
There are many ways to invest in commercial real estate. You can find a sponsor who will partner with you on the investment, and has a proven track record of profits. You can buy into a Real Estate Investment Trust, or a REIT. This is a publicly traded company that typically pays back 90% of their profits to the share holders. You can join a group of other investors who all go in on the same deals together. This can be a bit more complicated at times, but is proven to be a very successful technique. Or, you can always go it alone, if you have a firm grasp on what you’re doing.
Very shortly I will be expanding my services into Commercial Real Estate Investments, with a very large and proven firm here in town. While I don’t want to tip my hat just yet, you’ll see an announcement come through when the time is right and the paperwork finalized. Don’t worry, I’ll still be providing all the great residential short sales, pre-foreclosures, REOs and fixer-uppers as before. But now you’ll also have many great opportunities to invest in larger commercial projects as well. Stay tuned, and prepare your checkbook!
