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Types of Commercial Real Estate Investments (2019 Update)

When you think of commercial real estate investments, what comes to mind? For most people, commercial real estate is synonymous with retail or office space, but while these are definitely types of commercial real estate that offer potentially lucrative investment opportunities, they aren’t the only types available to you as an investor.

Multi-Family Housing

One great way to invest in commercial real estate is by investing in multi-family housing, such as a condo or apartment building. Most investors are not in a place financially to purchase an entire building or complex, but many of these properties are owned by trusts or investment clubs, making it much easier for investors to participate.

Multi-Family Housing

If you’re interested in this type of commercial real estate investment, you could pool your investment capital with others’ capital via an REIT (real estate investment trust) or another investing group or club. Essentially, instead of owning the property itself, you’ll own equity or shares in the property, and you’ll receive quarterly or monthly returns on the property’s profits based on your percentage.

Medical Real Estate

Medical real estate is another type of commercial real estate that is often available through real estate investing groups and trusts. This type of real estate can include any property that is designed and built out for the medical industry. Some popular medical real estate properties are hospitals, senior care centers, specialists’ clinics, general practices, and urgent care clinics.

The appeal of medical real estate is that it is always in demand. With people living longer than ever, geriatric care is a growing field, and with the enactment of the Affordable Care Act, more people than ever before have health insurance and are seeking medical care. As a result, more and more medical real estate properties are being built, but the supply has not come close to meeting the demand in most markets.

Retail Shopping Centers

Finally, we mentioned retail spaces earlier, but let’s go into a bit more detail. Retail shopping centers generally have multiple rental units, which can have a great stabilizing effect on your investment. If you invest in a property with multiple tenants, you will likely still see quarterly returns, even if one or more tenants leave and you go a few weeks or months between tenants in that space.

Furthermore, retail properties tend to have longer leases than residential properties, which means that you’ll have more stability in your income from a commercial property like this. If one of your tenants is a large corporate store, it’s not unusual for them to sign a long-term lease of 15 to 20 years.

These are only a few of the many types of commercial real estate investments you may want to consider to diversify and stabilize your portfolio. Consider them and other commercial properties before you commit to your next investment.

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Single-Family Rental Properties in Dallas Provide Investment Opportunities (2019 Update)

If you’re looking for lucrative ways to increase your wealth and diversify your investment portfolio, then real estate is a fantastic choice. Of course, as you begin doing your research on this type of investment, you’re going to find a lot of information on single-family homes and how to invest in them. If wondering whether or not single-family houses for rent in Dallas are the way to go for your portfolio, consider a few factors that might contribute to your decision.

Dallas Has a Very Lucrative Rental Market

First of all, perhaps because it’s a growing economic hub, there’s a huge demand for single-family rental properties in Dallas. Basically, every year, corporations headquartered in Dallas recruit new talent from all over the country (and all over the world). These people relocate to Dallas temporarily or permanently, and they need places to live in the first few months or years of their stay.

Essentially, most people moving to the Dallas-Fort Worth area are not going to want to buy a house before they get a chance to get to know the area and where they want to live. As a result, these new residents are looking for good rental properties, and single-family houses for rent in Dallas are a great opportunity for them.

More Millennials Aren’t Buying Houses

At the same time, we’re seeing a continued increase in the demand for single-family houses for rent in Dallas because younger professionals who would traditionally be in the market to purchase their first homes are waiting longer and continuing to rent instead.

Perhaps because they’ve come of age in the aftermath of the housing crisis of 2008, millennial adults are less likely to buy than rent. This could also be due to the fact that many of these young professionals expect to move for work several times before settling down (if they ever truly settle down). They don’t want to be locked into selling a house before they can move to their new job or take off on their next great adventure, and so they’re more interested in renting instead of owning.

Fewer Starter Homes on the Market

Another thing that could positively affect your experience with single-family rental properties in Dallas is that there are fewer starter homes on the market than in years past. In decades gone by, young adults would live in apartments until they could afford to buy their first homes. Today, there’s been a shift in housing trends, and there are fewer starter homes being built and put on the market. This means that there are fewer opportunities for those who do want to buy a house on a smaller budget, and instead those people are looking for single-family rentals until they can afford something larger.

With this information, you can see how single-family houses make great rental properties in Dallas. Consider this market for your next investment.