Real Estate Compared to Other Investments
There is no one-size-fits-all investment strategy. Investors that strive for a diversified portfolio often include multiple types of investments, including stocks, bonds, and alternatives. Commercial real estate is one such alternative investment. What makes it different?
3 Reasons Investors Choose Commercial Real Estate
Cash flow potential
Commercial real estate investments can generate both short-term and long-term returns for investors. Also known as cash flow, some properties generate monthly or quarterly dividends for investors through things like rent payments.
Diversification can help minimize risk.
Adding real estate to your portfolio can help diversify your investments away from the stock market. With CrowdStreet, you can further diversify your commercial real estate portfolio by investing in different asset classes, geographies, and risk profiles. Commercial real estate deals also target longer holding periods (often 5+) years, which means they aren’t subject to the same daily ups and downs of stocks.
The appreciation of real assets.
Also known as upside potential, commercial real estate properties can increase in value thanks to their location, amenities, and the potential increase in rental income. For most commercial real estate investors, the big payday comes when their investment exits or is fully-realized, meaning the property sold or refinanced for more than it cost to build/upgrade. To date, 19 CrowdStreet deals have fully-realized.