Commercial real estate consulting services can help you grow and expand your portfolio. Commercial real estate, if properly managed, can be a great asset that can support you for the long-term. However, real estate as an investment receives an undeserved bad rap for a few reasons:
- The media touts stocks as being easy trades. This is true, but it is at the expense of your portfolio and doesn’t best represent present-day commercial real estate realities.
- There was a lack of industry transparency in the 1980s when registered limited partnerships were a popular way to own real estate.
- A commercial real estate consulting firm will tell you the least efficient way to invest in real estate is owning it directly. This is because the government opposes holding real estate this way and, in turn, taxes it very high.
Here are some reasons why commercial real estate (in the form of REITs) is a great investment opportunity (you may have questions for your commercial real estate consulting professional about the details of these):
- Most REITs hold properties like office buildings, hotels and apartments. Their income comes from rent payments.
- A publicly traded REIT is like an exchange-traded fund, which is a type of mutual fund.
- REITs get beneficial tax breaks; 90% of their cash flow goes to investors.
- REITs pay high dividends.
If you are still not convinced to invest and get commercial real estate consulting, here’s one last reason to do so: According to Matthew Yglesias, author of The Rent is Too Damn High, the total value of commercial real estate in the U.S. as of December 2013 was $20 trillion. This equals the value of publicly traded stock. Trillions of reasons for you to invest in commercial real estate!
Menlo offers commercial real estate consulting services and can assist you in selecting what properties to add to your investment portfolio. Learn more about us here.