Posted on: September 3, 2021 Posted by: Flenn Freeman Comments: 0

Real estate is a popular business and investment option. Overall, it’s solid. Land and property will always be a necessity, more so as the population grows. This generally keeps prices going up, provided the properties are well-maintained and upgraded as needed. There are two basic kinds of real estate, commercial and residential. In most regards, real estate is real estate. But there are some differences between commercial and residential you should be aware of.

Income and Finance

If you are interested in commercial real estate development, some good news is that those properties usually have longer leases and higher incomes. The advantage that residential real estate has is that it is easier to finance and tends to be much less complex to purchase. In addition to being more expensive, commercial purchases usually require more capital upfront.

The Whims of the Owner

There are many factors that cause the price of a property to fluctuate. The lessors of commercial real estate tend to view it as a utility, which helps stabilize the value. Residential property values can be greatly affected by the whims of the owner. 

The Value of Your Network

With residential real estate, it’s enough to work with the agents in finding listings. To be successful in commercial real estate requires a solid network. Who you know is every bit as important as what you know. A large and well-connected network can help you find properties that are not listed.

Evictions

Unfortunately, tenants who don’t pay are a part of owning property. It can be difficult and time-consuming to evict a non-paying residential tenant. Following the letter of the law can allow a tenant to remain for some time without paying you rent. With commercial real estate, if your tenant stops paying you can get them out immediately.

When getting involved in real estate, you can choose commercial, residential or both. It’s important to know the differences before you buy a property.

Real estate is a popular business and investment option. Overall, it’s solid. Land and property will always be a necessity, more so as the population grows. This generally keeps prices going up, provided the properties are well-maintained and upgraded as needed. There are two basic kinds of real estate, commercial and residential. In most regards, real estate is real estate. But there are some differences between commercial and residential you should be aware of.

Income and Finance

If you are interested in commercial real estate development, some good news is that those properties usually have longer leases and higher incomes. The advantage that residential real estate has is that it is easier to finance and tends to be much less complex to purchase. In addition to being more expensive, commercial purchases usually require more capital upfront.

The Whims of the Owner

There are many factors that cause the price of a property to fluctuate. The lessors of commercial real estate tend to view it as a utility, which helps stabilize the value. Residential property values can be greatly affected by the whims of the owner. 

The Value of Your Network

With residential real estate, it’s enough to work with the agents in finding listings. To be successful in commercial real estate requires a solid network. Who you know is every bit as important as what you know. A large and well-connected network can help you find properties that are not listed.

Evictions

Unfortunately, tenants who don’t pay are a part of owning property. It can be difficult and time-consuming to evict a non-paying residential tenant. Following the letter of the law can allow a tenant to remain for some time without paying you rent. With commercial real estate, if your tenant stops paying you can get them out immediately.

When getting involved in real estate, you can choose commercial, residential or both. It’s important to know the differences before you buy a property.