Investors often turn to real estate to help them diversify their portfolios and enhance yield without taking on the excessive risk presented by the volatility of the public equities markets. However, not all real estate is created equal, and different asset classes will require equally different commitments of investors’ commitment resources to realize their intended returns.
For example, investments in residential real estate, including single-family homes, condos and other multi-family apartments, typically require investors to take an active role in the management of the property in order for them to earn income. For example, the owner of a residential, multi-family apartment building must spend a significant amount of time, resources and dollars finding tenants, negotiating leases, collecting rent, and making needed repairs.
Conversely, commercial real estate requires less of an investor’s hand-on attention, thanks to long-term tenant lease agreements and triple net leases in which tenants pay all of a property’s real estate taxes, insurance and maintenance fees. As a result, commercial property investors can sit back and collect a steady stream of reliable and predictive passive income in the form of monthly tenant rent and earn significant long-term profits when they eventually sell a property that appreciates in value.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email firstname.lastname@example.org.