In most cases, a diversified investment portfolio tends to promote higher returns and lower overall risk. When it comes to diversifying your portfolio, a worthwhile asset comes in the form of commercial real estate investments. As with all investments, commercial real estate poses some risk, but there are also plenty of opportunities for profit and growth. Read the original blog: http://michaelralby.com/benefits-of-adding-commercial-real-estate-investments-to-your-portfolio/

1. BENEFITS OF
ADDING
COMMERCIAL
REAL ESTATE TO
YOUR
PORTFOLIO
Michael Ralby

2. In most cases, a diversified investment portfolio tends to promote higher
returns and lower overall risk. When it comes to diversifying your portfolio, a
worthwhile asset comes in the form of commercial real estate investments.
As with all investments, commercial real estate poses some risk, but there
are also plenty of opportunities for profit and growth.

3. INCREASED INCOME
Real estate investments, especially
commercial and residential, are often
favored because of their potential for
high returns. Because of this, cash flow is
one of the primary reasons why adding
commercial real estate to your
investment portfolio is a wise decision.
Renting out space to businesses can
provide a high, stable income for
landlords, and through commercial real
estate investments, investors can
manage a portfolio that is less
susceptible to volatility.

4. LOW VOLATILITY
Globally, real estate tends to be a more
stable investment than other assets such
as stocks, bonds, or even REITs. Because
of commercial real estate’s prosperous
past, investors would be wise to consider
adding such assets to their portfolio in
an effort to temper the potential
negative impact of recession or other
loss in income. On its own, a commercial
real estate investment can be profitable,
providing sufficient returns to investors,
but it can also be used to serve as a
security blanket should an investor’s
other assets drop in value.

5. TANGIBLE ASSET
Unlike immaterial assets like stocks, real estate is a “hard” asset meaning it has
inherent value. Beyond the tenants and their businesses, the building and the
land on which the structure was built are both worth something simply by
existing. While external factors can influence the actual worth of these things,
commercial real estate will never lose its value completely.
Additionally, hard assets like commercial real estate properties can give investors
a stronger feeling of pride and influence. With a physical property in their
possession, investors may feel more inclined to play a direct role in businesses’
successes and work to improve the tenants’ opportunities for success, thereby
promoting the investor’s stability and security, as well.

6. Commercial real estate investments offer numerous benefits even beyond
those discussed above. From tax benefits for investors to opportunities for
networking and adding value to property, investing in commercial real
estate can result in greater returns and stability in your portfolio.

7. THANKS FOR READING
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