What Is Commercial Real Estate Investing? Here's A Quick Video On The Many Types of Investments And Their Benefits. Hi, this is Frank Chen. Today I've got quick video on the many types of commercial real estate and some quick benefits to each. TYPES OF COMMERCIAL REAL ESTATE - Multi-Family Apartment Buildings - Self Storage - Mobile Home Parks - Retail Space - Office Buildings - Industrial, Manufacturing and Warehouses - Land Development - Hotels and Resorts - Health Care Facilities DIFFERENCES BETWEEN COMMERCIAL AND RESIDENTIAL - VALUATION - Residential: Purchase - land value and property value, Rent - FMR - determined by area - Commercial: Purchase - determined by income potential, Rents are determined by $/sq.ft, demand vs. supply - FINANCING - Residential: Smaller deposit, 100% loan to purchase, lower rates, but not as easy to get seller financing - Commercial: 30% deposit, higher rates, but better chance of leveraging - seller financing or using OPM. - RENTAL COMMITMENT - Residential: 1 year with option to renew, tenant quality fluctuates, vacancies hurt - Commercial: 3-20 Years, annual rent increase, better tenants, more flexibility with vacancy - MANAGEMENT - Residential: Most of the time YOU are the manager, time consuming, not budgeted for management - Commercial: Property management expenses built right into the valuation of property, professional companies to manage the ...

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