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The Truth About Commercial Real Estate

Jun 22, 2008
Many people confuse commercial real estate with residential real estate. What is the difference between the two? Commercial real estate has to do with buying and selling commercial properties for business purposes. This includes properties that are used for industrial purposes such as factories, medical buildings, such as doctor's offices and clinics, office buildings and apartment complexes. Of course this is list does not represent all definitions of commercial real estate, but it should give you an idea.

Residential real estate deals more with the buying and selling of private homes. This can include condos, town houses, houses, mansions and even castles.

What is the big deal about commercial real estate? The truth is that it aids in the expansion of businesses. As a business owner, you may be renting office space. When you go into commercial real estate, you decide you are buying property instead of renting. Many small business owners use these loans to fund diverse projects such as buying buildings, shopping complexes, or hotels, just to name a few.

Some business owners and entrepreneurs start buying commercial real estate for added income come streams. For example, an owner of a janitorial service company may decide to buy some land in an underdeveloped area of town. He may invest in developing the area, and then turn around and sell parts of the property to others who start to build a shopping mall in that area. In essence, he is not only creating income from his janitorial services, but also from investing in commercial real estate.

When you are dealing with commercial real estate, you are usually asked to define what you would use as collateral in order to secure the loans that are necessary. Some businesses use accounts receivable financing to secure a loan, especially if they are small businesses with little or no credit.

By using collateral, the lenders are certain of safe returns of the loaned amount. Because of the secured amount, small business owners and entrepreneurs can enjoy the ability to borrow more loans with which they can meet their requirements.

Unlike other forms of investing, commercial real estate can give you much more flexible payment options. You usually have lower interest rates and can get proposals regardless of your past credit history. Many businesses have had success in getting proposals, even though they have had bad credit histories.

Commercial real estate provides you with more flexible payment duration. It also comes Good and bad credit history holders can both obtain the amount needed and then manage and supervise their expenses. Commercial real estate can also assist you with rational policies that the bad creditors have, so they can recover their poor credit scores.

Best of all, as a small business owner or entrepreneur, you can get your approval online within seconds by simply submitting an application online. This electronic application that you submit will make the entire procedure go faster and better. It saves time and effort on your part. Every lender that allocates the funds necessary for your commercial real estate endeavor will provide the online application process at no charge to you.

If you are interested in finding information on commercial real estate investments you can do a basic search on Yahoo or Google. There are hundreds of sites available that will list real estate property around the country. Some of these sites even list commercial real estate property that is available all over the globe. The process is really simple;

1. Search for properties of interest
2. Find a professional to help you
3. Get a loan quote
4. Fill out application
5. Submit

You can do all this from the comfort of your computer and the information is just a few mouse clicks away. The truth is that when it comes to commercial real estate, you many options available to you.
About the Author
This is Emil from investing-in-property.com coming to you with this article on property investment. If you'd like to find out more please visit my website .
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