Why should one invest in commercial real estate over residential real estate?
Residential real estate, afterall, is often thought of as the best place to start for new real estate investors.
However, if you dive deeper and talk to any experienced commercial real estate investors, you’ll find they recommend you skip residential real estate altogether, if you can.
Let’s look at the top five reasons why commercial real estate holds the upper hand.
Scalable Cash Flow Potential:
Why should one invest in commercial real estate over residential real estate?
Residential real estate, afterall, is often thought of as the best place to start for new real estate investors.
However, if you dive deeper and talk to any experienced commercial real estate investors, you’ll find they recommend you skip residential real estate altogether, if you can.
Let’s look at the top five reasons why commercial real estate holds the upper hand.
Profitability Through Leverage:
The power of leverage in commercial real estate is unmatched.
With the right strategies, investors can control valuable assets with a minimal amount of their own capital. For example, the average investment in our projects is only $100,000.
Furthermore, with the benefit of investments such as the Headway Income Fund, investors can quickly begin generating monthly cash flow and growing their wealth, all while maintaining liquidity.
Alluring Tax Advantages:
Ah, the much-coveted tax benefits. A hot topic amongst high-income investors.
Commercial real estate provides an array of deductions, from mortgage interest to depreciation.
Additionally, with strategies like 1031 exchanges, savvy investors can defer capital gains tax, re-investing in higher-performing properties.
Pair this with the potential depreciation benefits of apartments or car washes, and you’ve got a potent formula for wealth preservation.
Equity Appreciation Potential:
Commercial properties are valued based on the income they generate, not comparable sales. Enhancing the property, optimizing operations, or increasing rents can elevate the property’s value.
By taking actionable steps, the team you invest with can influence and increase your property’s value.
To the busy professionals on the move: commercial real estate isn’t an investment option; it’s an empowerment platform.
Your pursuit for cash flow, equity appreciation, and tax benefits can find its home here. And while residential real estate holds its merits, the commercial space is more attractive with its economies of scale, cash flow stability, and the ability it gives you to partner with experts.
For those on the brink of diving into the investment waters, remember: the tide is high in the commercial domain.
Whether you’re a seasoned investor or an enthusiast, let Headway Capital be your compass, guiding you through the vast seas of opportunity.
When you’re ready, there are 2 ways we can help you:
1. Interested in partnering with us as a passive investor? Schedule a call with us here. We’d like to learn more about your unique investment goals.
2. Ready to apply to invest? Fill out our application here. We’ll be in touch shortly after to see if we’re a good fit for you.
** Please note, that investments are for accredited investors only at this time. **
