“Fear melts when you take action towards a goal you really want.” -Robert G Allen

There are several reasons why owning commercial property is better then owning resident property. The reasons are clear for anyone who has ever worked as a landlord. Cranking tenants complaining about everything on earth in the middle of the night.

Most people invest in residential real estate because commercial real estate feels like unchartered waters and we are afraid. How exactly does a commercial landlord do, act, and say? Commercial property must work pretty well, after all Donald Trump started his emperor by being a commercial property ‘landlord’ and if it worked for him it can work for you.

Below are a few reasons why you might want to consider investing in commercial real estate instead of residential.

The first reason that commercial real estate has a higher rate of return then residential properties. Commercial property is space for businesses to sell their products and services. Their businesses depend on the number of visitors they receive each day in their store.

The monthly rent on a commercial property is based on a certain percentage of the profit the company makes each month. As the businesses your rent to, make more money so do you. When a business comes and want to rent from you they do so because they know you have a good location.

These businesses know the value of being centrally located and they are willing to pay to be in the right place. Location is less important for residential properties and it takes time to fill up your real estate.

Most commercial renters will fix problems and minor repairs on their own with out calling the landlord. This is because they realize that problems interfere with their business and need to be taken care of immediately. Unlike residential renters who need the help of a landlord to take care of repairs. The updates done on commercial property can be fairly substantial and stay with the space when the business moves on.

Companies usually need to put in networking and cable wires, sound systems, and electrical outlets. All of which increase the market value and marketability of your commercial space. If you are interested in buying and renting property do not over look the benefits of buying commercial property.

It is far more passive then residential real estate and appreciates in value much quicker. Being a commercial ‘landlord’ is far easier and you have the ability to network with people and businesses which you may work with in the future.

By: Mika Hamilton

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When you are looking to purchase a home in the United States, or simply looking for a refinance, you will quickly learn that there are a lot of home mortgage options out there for you. All of the options will seem interesting and it will have you thinking that traditional fixed mortgages are no longer the way to go. It’s important to bear in mind, though, that a fixed mortgage can offer the most security and give you the best chance of staying out of foreclosure.

With fixed mortgages, you never have to worry about increasing payments, unless you have your mortgage lender escrow your taxes and insurance as those things may experience slight increases over time. The important thing, though, is that you will never have to fear what the economy or mortgage market is doing and how it will affect your interest rate. Even when times are at their worst, you will always have the same interest rate and therefore you will have the same principal and interest payments. You will never find yourself opening your mortgage statement one month and feeling surprised by the payment amount you see on the paper.

When you have to budget out your income, you will always know how much you need to set aside for your mortgage payments. If you were to have an adjustable rate mortgage, every six months or so you could be faced with an increase in your mortgage payment. Since most people cannot afford the increasing payments, they end up running behind which is just the beginning of the end.

Fixed mortgages are easier to keep up on. The payment amount that you have for your first month will be the same payment amount you have for the rest of your payments. Of course, your final payment may be a little more or less depending on what you have owe to the bank. Since you will always know what the majority of your payments will be, you can easily plan for the future. You can plan how you are going to increase your principal payments in order to reduce your debt or you could finally plan that family vacation you have always wanted to take.

Even if other types of mortgages seem to be the better choice, do not make the mistake of setting yourself up for something bad in the long run, for something that seems better for the moment. This might mean accepting a slightly higher interest rate for fixed mortgages than a lower adjustable interest rate. Over time, that adjustable interest rate will change and your payments may very well increase. Think about your financial situation and how important security is to you when you are exploring all of your fixed mortgages options and other types of mortgages.

By: J. David Rogers

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