CRE-Finance LLC Suggests That You Balance Your Portfolio by Investing in Commercial Real Estate

Commercial real estate could be the perfect choice for your portfolio.

To balance risks and returns, investors are seeking diversifications for building up their investment portfolio. Diversifying protects you from losses resulting from any single investment category. Real estate has always been an area of interest for experienced and new investors alike.

If you are considering different options for diversifying your investment portfolio, the mortgage professionals at CRE-Finance LLC want to emphasize for you why commercial real estate could be the perfect choice:

Evolving Market and Plentiful Opportunities

Since 2011, the commercial real estate market is stabilizing and has immense opportunities to offer. In residential real estate markets, you have to come across a lot of foreclosures and multi-family residential buildings that have become really expensive to afford. Buying commercial real estate properties, such as retail properties, warehouses, and others is comparatively a feasible choice.

Worth Consideration after the Financial Crisis

After the financial crisis, each investor is interested in playing it safe. By investing in commercial real estate, equity can be balanced out and a safe cushion for investments can be kept. Even wealthy investors are seeing prospects and potential in the commercial real estate market that is growing stronger with every passing day.

Regular Dividends through REITs

If the idea of money being tied up for an extended time duration bothers you, investments are made easier with real estate investment trusts (REITs) that are way more liquid. With numerous individual properties paying up in REITs, there are greater prospects for earning regular dividends. While most REITs are less correlated, investors can opt for non-listed REITs to enjoy similar security exposure.

Private Equity Funds

Besides REITs, investors interested in commercial real estate can also pick on private equity funds. Although they offer less liquidity as compared to REITs, holding onto attractive properties and investing into specific aspects of commercial real estate, locally and overseas, gets increasingly easier.

Direct Investment

Commercial real estate acquired earns you profitable returns with rental payments too, while appreciation in the property value accounts for a higher capital gain. Familiarity with market dynamics will prove to be helpful in picking on profitable properties that generate more income with time and whose value appreciates with inflation. Expert advice and consulting a professional would prove helpful in determining the right choice of properties for purchasing and benefiting from short-term appraisal gains and fulfilling your needs.

Deal Financing

Commercial real estate can be purchased through commercial mortgage-backed securities (CMBS) and customized loans. Opting for a CMBS loan makes the property turn into collateral and rental income from tenants is used to pay off the debt.

Whereas in the case of a customized loan, a credit specialist structures unique properties against the loan and a personal guarantee for enhancing the collateral through. Unlike customized loans, CMBS does not require any personal guarantees for financing the transaction.

Balance your investment portfolio by investing into commercial real estate and building a broad spectrum of investments. With reduced barriers for investing, gaining higher annual cash returns from the CRE market is a worthy find.

If you have any questions regarding commercial real estate or are seeking financing, please reach out to the mortgage professionals at CRE-Finance LLC. Rich Tretsky can be reached at 212-257-7307 or Todd Tretsky can be reached at 212-257-7305. You can also visit us at www.cre-finance.com

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