Understanding the 1% Rule in Commercial Real Estate Investment
The 1% rule in commercial real estate investment is a helpful guideline for investors assessing property deals. It serves to simplify the decision-making process by helping identify properties that are likely to generate positive cash flow. This rule suggests that the monthly rent should equal or exceed 1% of the property's purchase price. Understanding this rule could be a valuable tool for both novice and seasoned real estate investors alike.
Understanding the Drawbacks of Commercial Real Estate Investment
Commercial real estate may seem like a lucrative investment, but it comes with its own set of challenges. This article delves into the disadvantages of commercial property, such as market volatility, high entry costs, and complex management. We'll also explore the influence of economic cycles and tenants' impact on property value. Whether you're an investor or simply curious, this comprehensive guide offers valuable insights into the less glamorous side of commercial real estate.
