Most investors tend to think about residential real estate instead of commercial real estate investment opportunities. Although any property investment presents a mix of risks, drawbacks and rewards, there are many small towns that offer great real estate investment opportunities far and above what the big city can present.
Natural diversification When examining a small or rural community to determine if your commercial investment would pay off, also consider the local housing market. If there’s a sudden boom of homebuying in your target area, chances are equally good local commerce will thrive, and that’s good news for your bottom line.
Before you enter a community, consider the local mindset around small businesses. Has the area invested money in recruiting, retaining and supporting small businesses? Is the local chamber of commerce or town council vocal about its desire for a booming small business culture?
Investing in community Financing commercial real estate means looking at more than the ROI of that investment. Most small towns and rural communities will be very interested in who wants to invest in their community – and will be less cooperative if you don’t show the same care.
Risks vs. returns Of course, there are always risks associated with commercial real estate. When you’re investing in an area with a smaller population, you run an increased risk of a loss of ROI — small businesses are seeing more success now than ever, but there’s never any telling what could happen.
Contact us at (480) 225- 2234 to get preapproved for mortgage while you look for the investment property of your choice. We can get you the best rates available and also discuss the loan choices that best meets your needs.
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