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Commercial Short Sales Vs Residential – What Makes the Difference?

Have you been wondering what the pros and cons are of both commercial and flipping apartment complexesresidential real estate investing? Read on and find out which is best for you.

There are a number of differences between commercial and residential properties. There is far less competition in commercial than residential. In some cases it is easier to finance commercial property than it is to finance residential. In residential the value of your house basically is determined by the house next door and the one across the street and the one 2 blocks over. In commercial real estate you could have 2 buildings next to each other and 1 could be 400 units and the other one could be 12 units. Unlike houses, with commercial real estate you have to keep finding deal after deal to make more money. On the other hand, over 120 banks failed in residential and over 700 are predicted to fail in commercial.

For commercial property whether you are looking at office or industry or retail or apartments, remember to focus on apartments for your first deal. Everybody who is into real estate investing understands how apartments. Apartments are a wonderful thing to combine with residential flipping strategy to really augment your wealth and begin to set you up long term for life.

The way the value of an apartment complex is determined is partially based on the income of the property, the more income the property takes in the more it is going to be worth. The value of a commercial property is based on the income it produces and because you can to some extent control the income, you can control the value of your property regardless of the market. What’s more? Well, the values of commercial real estate are based on rents. Higher demand for apartments means higher rents and higher values which adds up to higher profits for investors.

The truth is you invest in a lot of commercial properties for different reasons than you invest in residential property. You can use your residential investing strategies into commercial strategy because you can make large chunks of cash flipping houses and you can with apartments too. Whether it’s a residential or commercial deal, you can start small. All you need is to do a deal. Listen to all of the strategies, take notes and choose the strategy or two that you think will work best for you, but learn about them all.

For more on Commercial Foreclosures and Commercial Short Sales check out our website. Learn the difference between Commercial Vs Residential Real Estate and find out what works best for you.




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