Managed commercial properties may make you more money
The increasing popularity of managed commercial properties has opened the doors for many investors. If in the past, these kinds of assets were accessible only to the big players, now just about anyone can enjoy managed direct ownership. The real estate industry is highly competitive, not to mention complex. Nonetheless, if you want to improve an investment portfolio, there is no better vehicle to meet your needs and preferences. As a matter of fact, you can make more money than you imagined. If you want to find out more, please continue reading.
What to know about managed real estate investments
The reason why people invest in real estate in the first place is that properties appreciate in value with inflation and they can leverage their investments. Investing in income property is certainly better than investing in, let us say, bonds or gold. Investors do not have enough money or expertise to acquire assets yet they do it anyway. The good news is that investors can sell and reinvest the proceeds in new assets. What these individuals do is buy managed commercial properties directly through a program that is called “Structured 1031 Exchange”. Real estate private equity firms that make available such programs are only interested in helping people create passive income and, of course, create wealth. The professionals take care of everything, meaning property acquisition, asset management, financing, legal issues, and tax opinion.
Are managed commercial properties better?
If you own an apartment complex, then you know what’ it’s like when people come to you with all kinds of complaints. They will go so far as to wake you up in the middle of the night. If you are sick and tired of multifamily commercial real estate, then you should direct your attention towards managed commercial properties. Changing your approach is what you need to do right now. Managed commercial properties are better than regular ones and this is why:
- Collective investment – you will be pooling your funds with many investors across many investments, as well as managed professionals. It is a lot easier since there are many funds to choose from. What is more, capital gains are spread fairly among investors.
- Rental collection – tenants do not always pay the rent on time. It is needless to say that you have to choose tenants that are reliable, if you have time, of course. When using a real estate investment vehicle, you do not have to worry about rental collection because it is taken care of by experts.
- High-value tax exchange – let us say that you exchange a high-maintenance asset for a low-maintenance one. You are required to pay a high amount of taxes. Not if you do business with a professional real estate company. The program is called Structured 1031 Exchange for a reason. Properties are swiped and it is not necessary to pay capital gains tax.
More and more investors chose management-free investments. Should you do the same thing? The answer is yes. You do want to make a lot of money, do you not?