November is National Entrepreneurship Month, a celebration of all the risk-takers and go-getters who push their ideas forward and hedge their bets on themselves. There are so many kinds of entrepreneurs and businesses in which they operate. But today our focus is specific to the commercial real estate entrepreneur. Whether you’re looking to get your start […]
November is National Entrepreneurship Month, a celebration of all the risk-takers and go-getters who push their ideas forward and hedge their bets on themselves. There are so many kinds of entrepreneurs and businesses in which they operate. But today our focus is specific to the commercial real estate entrepreneur. Whether you’re looking to get your start as a CRE entrepreneur or you are an existing one and actively adding more properties to your portfolio, continue reading to see the lucrative advantages of operating a commercial real estate venture. Even better, now’s the perfect time given the current economic environment and its positive effects on the CRE market.
Investors purchase commercial real estate as a business venture with the intent to earn a profit either through 1. rental income or 2. price appreciation of the property. So, let’s start with the basics: the types of properties that are considered commercial real estate.
Here’s a breakdown of the main types of commercial real estate:
In most cases, a commercial real estate property is rented out to other businesses, but it can also be leased to individual tenants, such as with multi-family properties. Each asset type comes with its risks and advantages, though the industry as a whole is continuing to show upward potential for savvy CRE entrepreneurs.
Owning a commercial real estate business helps investors diversify their assets and better weather the storm through market downturns.
The value of commercial properties tends to perform well even when the value of equities and stocks is in decline. Particularly during periods of market volatility, owning commercial real estate is a strategic endeavor for investors and entrepreneurs.
One of the biggest benefits to such entrepreneurs is that CRE delivers supplemental income and even passive revenue streams through tenant lease payments.
The best investments are made when those payments cover the owner’s loan payments and carrying costs, and even turn a monthly profit.
In addition, the property is gaining equity over time through natural market inflation or building renovations and improvements.
Above all, owning a commercial real estate venture gives investors the benefit of versatility in how they purchase, manage, and sell their investments.
These entrepreneurs can either make improvements to their properties and flip them for a profit, or they can keep the property and continue to collect rental income for the business.
That’s what makes this type of entrepreneurship so exciting. CRE entrepreneurs have tons of options to leverage and control their money while gaining more wealth from their investments.
There are also tax benefits of owning commercial real estate, all CRE entrepreneurs should know this.
Established in 1998 and headquartered in Simi Valley, CA, AVANA CUSO is one of the most seasoned credit union service organizations (CUSO) focused on commercial real estate lending. For decades, we have partnered with credit unions across the country to offer competitive and collaborative CRE loans. We also uniquely support and guide our partners through the entire lifecycle of our loans. AVANA CUSO is a proud member of the AVANA Family of Companies.
AVANA Group of Companies and AVANA CUSO are dedicated to empowering CRE entrepreneurs by providing tailored business lending solutions that align with their unique needs and growth aspirations. With over two decades of expertise in commercial real estate lending and private credit, AVANA is committed to helping entrepreneurs seize new opportunities, expand their portfolios, and achieve sustainable growth. Whether it’s navigating complex financing scenarios or securing funds for acquisitions, developments, or expansions, AVANA stands by CRE entrepreneurs at every step, ensuring they have the resources and support needed to succeed. Through our comprehensive range of loan products and personalized approach, we enable businesses to thrive in an ever-evolving market landscape.
AVANA CUSO is one of the most seasoned credit union service organizations (CUSO) focused on commercial real estate. Established in 1998.
Benefits of Being a CRE Entrepreneur
/in PressNovember is National Entrepreneurship Month, a celebration of all the risk-takers and go-getters who push their ideas forward and hedge their bets on themselves. There are so many kinds of entrepreneurs and businesses in which they operate. But today our focus is specific to the commercial real estate entrepreneur. Whether you’re looking to get your start […]
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