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Reasons to consider commercial property investing

There are many types of real estate investments. While some people focus their time and money on residential properties, others have come to realize that commercial real estate is the only way to go.

All in all, the type of real estate you invest in should be based on your situation. How much money do you have to invest? In what areas do you have the most knowledge and expertise? Are you able to find good deals in your local area?

Here are some of the many reasons why commercial real estate investing is appealing:

-- Easier to scale. Generally speaking, it is easier to scale commercial real estate than single family homes. For those who want to invest in more than one property, this should be a consideration.

-- Less competition. While not always the case, commercial real estate does not typically have the same amount of competition as residential properties.

-- More financing options. For example, you can turn to private money partners to finance a commercial property purchase. The same cannot be said if you are investing in residential real estate.

While there are many reasons to consider commercial property investing, it doesn't mean it is the right decision for you. This is a big financial decision, so you only want to move forward once you are confident in the steps you are taking.

Before investing in commercial property it is a good idea to know the ins and outs of the industry, including the good, the bad, and any challenges you could face. This will help you surround yourself with the right team.

Source: Bigger Pockets, "Three Reasons Why Commercial Real Estate Investing Might Be Your Next Step," accessed May. 20, 2015

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