Many residential property investors think about moving into commercial property investment, but it can be a tricky transition. Here are some reasons it may be the perfect diversification for your funds.
Residential properties are a great way to dip your toe into the property investment waters, but there may come a time when you want to open yourself up to new opportunities. For some investors commercial property investment is the next step.
Commercial properties, which can be funded by Arizona Hard Money Commercial Loans, offer different cash incentives as well as other benefits to investors. Here are a few of those advantages!
If you’re renting a single-family residential property, you’re dependent on that one tenant to pay you. In a larger commercial property, you have less of a chance going a month with no income even if a few tenants fail to pay. The earning potential also grows because commercial leases typically have longer terms than residential and also the rate of return is usually higher.
Some commercial properties have specific operating hours
Unlike residential properties, commercial properties will usually have operating hours meaning you are more likely to deal with maintenance calls during normal business hours. There is the potential for other issues to arise, but for the most part your day ends when theirs does.
There could be tax advantages
When you’re looking into diversifying your investment portfolio it’s important to discuss how it’s going to affect you long-term. One advantage of procuring a commercial property, whether through a Arizona hard money commercial loan or otherwise, is that there could be deductions for depreciation or upkeep. Speaking with a financial advisor is a good way to understand the potential for those tax breaks.
Speaking with a Arizona hard money commercial loan funding entity is a great way to get your questions answered before jumping headfirst into the commercial property pool. Here at Level 4 Funding we are committed to working with our investors to make sure they have a comfort level before taking their next investment step.
We can walk you through the process, discuss different types of funding, and help you work out your financial future. Give us a call today to learn more!
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.