Hey everyone. I know most banks will only loan about 70% for commercial properties, so that’s a bit of a set-back, but generally the returns are higher (so Ive heard/read).
Can anyone see any problems with looking into the commercial/retail/industrial sector rather than starting off with residential. Obviously my capital wont be all that helpful, so a lot of deals wont be within my reach financially, as opposed to the lower-priced residential properties.
Any tips on what I should be looking for if I start looking at properties other than residential?[thumbsupanim](“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
commerical properties are higher risk
they might have better returns and the rule of thumb is , the higher the return the higher the risk factor.You might also find the cost of leasing or renting to be considerable. Then you add to this location, what the property can be used for, the limitations of that, and the market you might aim for. eg class A properties.office..industrial etc.
I had a friend bought a new unit, for around 300k, wasnt easy to finance, self employed using it for his own business. Commerical factory.
Time will tell if he gains anything re cap return
elves
” a blind man may see what a sighted man may not”
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