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Different commercial real estate investment strategies

Maryland residents who are interested in investing in commercial real estate may avail themselves of several different approaches and strategies. The best method often depends on the amount of available capital they have and their ability to obtain loans.

Some investors choose to purchase so-called "trophy properties", which are located in desirable locations, are new or are otherwise high-profile. While this may seem like a lower risk strategy to take, the cost of such properties is normally very high. Most people would need to be able to obtain commercial real estate loans in order to acquire these types of properties. If they qualified, they would need to make certain they receive decent interest rates and check when the loans would mature.

Other investors prefer to look for properties that are rougher but which they believe can be made profitable. People may purchase distressed properties that are secured by loans that are reaching their maturity date. They may then be able to refinance the loan and then resell the property later at a profit. Other investors may want to consider buying interests in a publicly-traded real estate investment trust, which is a way they can invest in a diversified portfolio of commercial real estate without actually purchasing properties themselves.

Commercial real estate can be a sound investment, but people should make certain they fully investigate the property in which they are interested before agreeing to its purchase. Investors may want to seek the advice of a real estate law attorney regarding these transactions. An attorney can conduct a thorough analysis of the property, its zoning and the available customer base. Legal counsel can also do the necessary research to make certain the property's title does not have defects.

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