“Don’t believe everything you read”. Truer words were never spoken, especially with how all sorts of information is available on the Internet. Needless to say, not all of them can always give you accurate information, especially when it comes to myths about commercial real estate. There are all kinds of myths going around in the world of real estate investment, and it is essential to debunk them. No matter which kind of investor you are, knowing the truth is important to get ahead in the game. Here, we debunk four of the most common myths about investing in commercial real estate.
Myth #1: Investing in Commercial Real Estate is Only for the Wealthy
The most popular one is that you have to invest large amounts of money. In reality though, it is definitely possible to start with a smaller amount.
Myth #2: Taking Care of Commercial Property is Time Consuming
Another one running rampant is that CRE is always a high-maintenance investment, when really, they can be the opposite if you make the right choices. As compared to residential real estate, the profits are generally higher in commercial real estate, so taking care of the property becomes easier for the investor. Moreover, the investor can leave the managing of the property almost entirely to the companies occupying the place.
Myth #3: Thinking that CRE Investment is Only for Experienced Investors
Some believe that investing in commercial properties is something that only experienced investors do. However, the reality is, anyone can invest in commercial real estate as long as they do proper research and have connections with a community of experienced experts in the industry.
Myth #4: Commercial Real Estate Investment is Too Risky
The truth is any investment in the real estate industry comes with its own risks. However, the saying goes, “The higher the risk, the greater the potential for profit.” Commercial properties aren’t too high of a risk, though. Triple net leasing is a kind of investment that is considered pretty low on the risk scale. They are also less susceptible to the market’s fluctuations.
The bottom line is that there are a lot of misconceptions about commercial property investing. But if you’re willing to separate fact from fiction, you may find that it’s a very lucrative endeavor.