Investments in residential properties include single family homes, condominiums, and other multifamily complexes.
Single family homes
Single family homes offer investors a cash flow to pay expenses and a small profit. However, having it vacant one month could eliminate annual benefits.
These properties benefit from the land efficiency and management. Since it requires a lot more capital to invest, the buyer must perform a complete and detailed investment analysis.
Commercial properties offer many opportunities for both small investors and for shopping center developers. Commercial properties can range from a small building with a single tenant to properties with more than one million square feet of shops that sell goods or services to the public.
A commercial meant to be occupied by a single user. It is typically found near major shopping centers on major routes, and fills a specific need in the area.
A string of shops with no anchor. Due to its rectangular shape, adapt to a variety of uses. It can convert from shops to offices with a relatively low cost.
Neighborhood Shopping Center
Usually include a grocery store or pharmacy as main tenant, along with some retail services such as dry cleaners, laundries and restaurants.
Community Shopping Center
Usually include two or more major tenants, along with other shops, restaurants and retail services. Such centers are often run by managers.
Regional Shopping Centers
They usually have three or more major tenants, and a large number of general merchandise stores. A manager is essential to maintain the value of this large investment.
Many investors prefer office buildings rather than residential apartments because tenants tend to occupy the property for longer, claims usually take place during office hours, and there are fewer problems in collecting rents.
The investor must analyze the conditions of the office market in the area, before considering any investment. When comparing the income of several selected properties, the investor must pay special attention to services and improvements included in contracts with tenants.
Industrial properties are flexible buildings, general purpose properties that can be adapted to the needs of the tenant. The use in urban areas usually involves manufacturing, assembly and distribution. Investment in an industrial property requires research and a significant risk. However, industrial property can achieve a reasonable return if the tenant is a successful business.
The most important factor in the value of land is the location. If the land is intended for commercial use, it must have access and visibility from a major street.
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