Owning commercial properties can be quite useful in building wealth. Many wealthy people attest to that. Take it from the famous author Robert Kiyosaki, who said that real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.
Benefits of Owning Commercial Real Estate
The principal benefits of investing in commercial real estate are the power it brings to your investment portfolio. In addition to high recurring income, these properties can be eventually sold for a tidy profit.
In addition, there are many tax benefits available for those who own commercial real estate. Here are a few of the most common ones:
- Depreciation. The depreciation value related to commercial real estate holdings can be deducted annually.
- Loan Interest Deductions. Interest on mortgages or other property loans may be deductible at tax time.
- Capital Gains Benefits. Upon the sale of real estate, any capital gains are taxed at a lower rate than ordinary income.
- Passive Income Rules. In some cases, income generated from commercial properties may fall into lower-taxed passive income rules.
Financing Your Real Estate Purchases
Real estate, and in particular commercial real estate, can be expensive to acquire. Most people take out some form of financing to get the property they desire.
Here are a few of the options available to you:
- CMBS loans.
- HUD and FHA lending.
- SBA 7a and 504 loans.
- Equity and mezzanine financing.
- International financing.
- Bridge and hard money loans.
Speed Funding Can Help
Speed Funding is an expert in commercial real estate financing. They offer the full spectrum of commercial real estate financing options mentioned above, whether you are a first-time buyer, rounding out your property portfolio, or somewhere in between. Give them a call today to learn more about your opportunities.