5 Ways to Make Money in Commercial Real Estate

Most people are interested in the prospect of passive income. So if you can afford to add a granny flat to your primary residence or even purchase a second home to rent out, you might want to consider what you stand to gain by doing so. That said, the average person won’t necessarily have the money, time, or inclination to invest in commercial real estate. But if you’re looking to earn a living off the properties you own, commercial assets could definitely fit the bill. And there are several ways that you could make money in the commercial real estate game. Here are a few options you might want to look into if commercial property investments interest you.

  1. Leasing. One of the best ways to earn an income from commercial property investments is by purchasing a commercial lot and leasing out space for business use. Whether you buy an office building or a retail center that is already developed or you decide to buy land and erect your own structures, you stand to earn a decent amount of money, so long as you choose a good location, you don’t overspend, and you price your units appropriately for the area. You might also want to look into options like apartment buildings or condominium complexes.
  2. Flipping. This path isn’t right for everyone, but if you have a background in real estate, contracting, building, or related fields, you might be just the type of person to invest in busted properties, fix them up quickly, and turn around and sell them at a higher price. With the real estate market beginning to recover, flipping could soon become a money-maker once again. But you need to have money set aside to make it work since you have to be prepared to pay a mortgage until you make a sale. This is especially important with commercial real estate - although you stand to make a lot more money than you would with residential property, you also have to pay a lot more up front.
  3. Land development. If you’re more interested in making a baby than raising it, so to speak, you might want to consider the prospect of land development. You can purchase property that is zoned for commercial use, build it out with appropriate structures, and then sell it for a profit.
  4. Property management. Making money in the commercial real estate market doesn’t necessarily require you to own and operate property. You could, for example, earn a living by managing commercial real estate that belongs to others. Whether you work for a reputable management company like Loeb Properties or you run your own business, you’ll find that plenty of people are keen to make money on commercial real estate so long as they don’t have to do the heavy lifting of property management, and that’s where you come in.
  5. REITs. There are a variety of ways to make money with commercial real estate, and you don’t necessarily have to take the hands-on approach associated with actually purchasing and/or maintaining property. When you choose to put your money into a REIT, or Real Estate Investment Trust, you can earn dividends without really having to work for it. Like any type of investment, there are risks, but if you’d rather let someone else manage your money where commercial real estate is concerned, this is a popular option.

7 Responses to 5 Ways to Make Money in Commercial Real Estate

  1. Caleb says:

    There are ways to see a return on your investment in rental properties. One way to ensure that you do see a return is hiring a reliable property management company. This way you know your property is taken care of.

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