You may be thinking it's time to either create or improve your portfolio. If you're new to the world of business, and you're not sure what a portfolio is, it's simple. A portfolio is your range or "collection" of different opportunities that you've decided to invest in, hoping that they will generate a sizable return of profits to you.
Here are a few ways commercial real estate investments can help build your overall portfolio.
Opportunity for Portfolio Diversity
Many investment portfolios include a broad spectrum of stocks and bonds. Adding a commercial real estate investment to a portfolio creates greater diversity, which in turn can protect against downturns in other market segments.
There Are Many Options
The types of commercial real estate investments open to an investor are varied. One benefit of owning an apartment complex, for example, is the fact that you can collect monthly rents from a large number of tenants. This can create a significant revenue stream, even if the property is not fully tenanted.
On the other hand, a business complex has longer leases—anywhere from 3 to 15 years—which creates a very different financial environment. The best fit for you will depend on your financial situation and overall investment goals.
Trusts Are Also an Option
For people who don't want to deal directly with properties, real estate investment trusts or REITs are also an alternative. This option lets you put the money into a trust with different investments, allowing you to minimize your risk and not requiring you to micro-manage every single facet of the investment.
We Can Help
If you’re ready to get commercial real estate financing for your next project or investment, come to us! Get in contact with one of our commercial real estate mortgage professionals and apply now for the type of financing that will best suit your ambitions for your commercial real estate projects.