I am saving money with the intent of investing in a commercial real estate project. Although I am very new to this process, I see the potential for success with the right business plan. Success in business requires preparation, luck, and grabbing the right opportunity when it comes along. Take the current state of commercial real estate in the United States for instance.
The Ups and Downs of Commercial Real Estate
Commercial real estate property is a property that is specifically for a business, like a restaurant, gas station, or hotel. In 2017, over 7,000 retail businesses closed down. It is estimated that over 12,000 retail businesses closed down in 2018. I personally don’t believe that brick-and-mortar retail stores will become extinct. I believe that they will evolve into real-world extensions of the burgeoning e-commerce marketplace.
It is the expansion of the online, e-commerce marketplace which is causing the closing of physical retail spaces. Not a cause for celebration at all, but instead of gloom, I see opportunity. It can cost hundreds, thousands, or even millions of dollars to invest in commercial real estate. In this environment, there is the potential for relative investment savings or deals with the right opportunity.
However, commercial real estate is fraught with investment risk. It’s hard for everyday people to surmount the complicated barriers that the legal, insurance, and contractual paperwork associated with commercial real estate presents to the uninitiated. That is why I am consulting my lawyer about investing in commercial real estate via the Equity Multiple Real Estate online investing platform.
The Equity Multiple Real Estate Platform
Equity Multiple Real Estate is an internet platform that grants accredited investors the ability to invest in commercial real estate opportunities that the company researches and vets. For this reason, the company is not really for the novice investor. However, if you are a beginner, you can invest with the help of an accredited investor or financial advisor working in your interests.
Accredited investors can choose from over 40+ investment opportunities across 30 commercial real estate markets that Equity Multiple Real Estate has access to in its business portfolio. Equity Multiple Real Estate has over $700 million dollars’ worth of commercial real estate deals since its founding in 2015. The company was founded by Charles Clinton, who oversaw over $10 billion dollars’ worth of deals through his career as a real estate lawyer, and Marious Sjulsen, who has over a decade of experience in real estate.
The Basics
Accredited investors can choose from specific real estate projects as presented by Equity Multiple Real Estate. This decreases diversification but increases the chance for profitable success. Investors also have greater control over investments compared to investing through a REIT or real estate crowdfunding platform. The minimum for investment ranges from $5,000 to at least $10,000 for most projects.
Exacting Standards
Equity Multiple Real Estate does not choose its real estate projects on a whim. Only about 5% of the projects Equity Multiple Real Estate considers make it to its platform. If you are wary of investing in commercial real estate due to its high cost of entry and legal red tape, have your lawyer or financial advisor consider perusing the Equity Multiple Real estate platform today.
Read More
- 4 Smart Tips All First-Time Real Estate Investors Should Know
- How to Understand the Real Estate Market
- Real Estate vs Stock Market
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.