When it comes to the world of property investments, there are a ton of critical decisions that investors need to make. Perhaps the most important is whether to put money into residential properties or commercial real estate. Though both can be advantageous, commercial options tend to offer more benefits in the long run for investors. From providing a bigger return on investment to offering a chance to give back to local communities, there are a number of interesting reasons to think about CRE when the time comes to invest in property.

Several Enticing Options

Residential real estate only offers you one general path with your investment. Most entrepreneurs will buy a piece of property, fix it up, and sell it for more than it was worth. The capital from this sale will then be used to secure the next property and so on. Commercial options, however, are a bit more broad in scope. Commercial spaces include office buildings, industrial facilities, multi-family homes, retail stores, and more. This means that you can have a lot of fun with how you go about using the property once you’ve purchased it.

Invigorate a Local Community

Buying commercial real estate allows you a unique opportunity to help develop a community. Investors all over the country are actively listening to the needs of neighbors in order to bring useful businesses into the mix. If organic food options are scarce, then you can do wonders by opening a grocery store that specializes in fresh and local produce. Not only does this benefit the community, it also makes you look like a conscious and trustworthy investor. You can leverage this positive image to secure better properties down the line.

See Several Sources of Income

Commercial properties also offer you the opportunity to make several lines of income off of one investment. When you purchase a multi-family home, you are getting a set number of units that you can rent out. Each month, you will receive rent from your tenants. This means that you’ll be able to count on a certain amount of cash as a profit. With residential spaces, you only ever see a single stream of income from an individual property. Explore commercial options and you will start to see the financial benefits in no time.

Commercial real estate can provide a number of advantages to first-time investors. Look over the options available to you and get a better idea of how you can use CRE to establish yourself as an entrepreneur.