After doing research the advice many RE investors have given is to stick to one industry and become an expert in that field. Socomes the question, what is the better real estate area to focus on?
After some research there seems to be some benefit to both. Here are some of my findings
Commercial
After some research there seems to be some benefit to both. Here are some of my findings
Commercial
- Big profits ( Ability to make huge profits in a single deal) Fastlane
- Less competition
- Can create your own value
- Big learning curve ( Which is great, barrier to entry)
- ( Downside ) Takes longer to get deals done
- (Downside) Takes more capital. Down payments are typically higher.
- Seems easier to manage
- Less tenant BS. After all they are usually making a living from your property.
- Usually dealing with high profile people which can open new doors.
- Lower down payments
- Less capital required
- (Downside) Usually smaller profit margins
- Can usually find deals under comparable market value
- Less risk !
- ( Downside) Vacancies hurt
- Management I feel it would be much more practical to manage 24 units under 1 roof then to manage 24 single family's.
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