Building a real estate portfolio is one way to build wealth and ensure your family’s future for generations. We often think about owning property via mortgages and loans but there are other strategic ways to fund, own, and sell property. Each option has its merits and can help you reach your personal financial goals. Sometime investors want to take their retirement funds and purchase property utilizing a self-directed IRA. Other times, it makes sense to go through a 1031 exchange. In all cases, a dependable commercial real estate broker can make your portfolio grow in Jackson, MS, and become the wealth-building vehicle you envisioned.

4 Ways of Handling Investment Property

Thinking outside the box is what successful people do, even in commercial real estate. Here are four ways you might handle your investment portfolio to ensure you meet your financial goals:

1. Self-Directed IRAs: This type of individual retirement account relies on you to completely administer it. It’s not necessary to only fund it with stocks, bonds, or mutual funds. You can buy retail stores, hotels, office complexes, multi-family homes, apartment buildings, and single-family homes. While there is a custodian that aids you in finding properties and doing the paperwork, you are in total control of this retirement asset.
2. 1031 Exchanges: If you already own an investment property and are considering selling it or buying more properties, you might use this tax-deferred exchange. You can sell and then buy a like-kind property and defer capital gains taxes. The process does require the use of a qualified intermediary to facilitate the exchange.
3. Real Estate Gifting: Investors looking for ways to handle assets in estate planning may consider gifting. It may be possible to purchase investment property with a gift of equity. There are some critical items to think about, including the tax implications for the recipient.
4. Estate Planning: If you’ve spent most of your career accumulating prime real estate, you will want to plan for what happens after you die. There are different tax rules to consider when planning your estate. Sometimes, a gift makes sense. Other times, it may be time to sell off over-performing assets so that your estate tax is at a lower rate.

Depend on The Estes Group for Commercial Real Estate Broker Services in Jackson, MS

Build a solid financial net worth portfolio when you work with experienced and qualified commercial real estate brokers at The Estes Group. We believe that an investor-focused approach to investing provides the best opportunities to meet your goals. We continually strive to keep up to date of the market in Louisiana, Alabama, Tennessee, Mississippi, and globally. We offer custom services with a focus on transactional management, asset management, and investment management. Take comfort in knowing that we can be your one-stop firm for all your commercial property needs.

Call us at 601-362-9633 or contact us online to discuss your real estate goals with our knowledgeable and experienced commercial real estate brokers in Jackson, MS. We’ll help you find real estate investments that will deliver the best return on investments.

As you build out your real estate portfolio, the time may come to diversify by adding a string of properties you don’t typically invest in. For example, you may enjoy taking a raw piece of land and developing it or prefer apartment buildings or single-family residences. Swapping between two property types (commercial vs. residential) can increase your portfolio. Still, there are some differences that you should understand that will aid you in making the best decisions for your financial goals. A trusted commercial real estate broker in Jackson, MS, can assist you in developing your overall portfolio.

Understand What’s Different When Buying Commercial vs. Residential Real Estate

Residential and commercial properties vary in almost every way. It starts with the building materials and moves on to the way each type is used. Each class has its place depending on your priorities. Here are the main differences between the two:

1. Uses: Residential properties are designed to be lived in. They include single-family, detached homes and also duplexes, triplexes, fourplexes, townhomes, and condominiums. Large apartment buildings are designed for residential use but are considered commercial property because the space is leased out to others as part of a business. Now, commercial properties are used for business enterprises, such as medical clinics, assembly plants, warehouses, shopping centers, and office space.
2. Building Materials: All projects require specific materials for their designs; however, there are differences between commercial and residential jobs. For example, homes use timber frame construction as it is considered cost-effective and appropriate for smaller-sized buildings. Commercial buildings are larger and more complex, requiring more substantial materials such as steel.
3. Codes and Permits: Commercial projects are built under stricter regulations than residential jobs. While they both have to adhere to specific codes and obtain permits from the area’s municipality, commercial properties have additional rules for building materials, electrical systems, plumbing, construction techniques, design, and size. There are additional standards for elevators, accessibility for the disabled, parking lots, and other areas.
4. Costs: There are more overhead costs involved in a commercial project. The expenses include building materials, but there are also compliance standards to uphold and specialized workers and equipment. Residential jobs have similar costs, but because of the scale, it isn’t a fair comparison.
5. Financing: Most residential homes are secured through bank loans, insurance loans, cash, or assistance from a government agency or non-profit. Commercial properties require more intense scrutiny for funding from bank financing, a government agency, or a wealthy owner or developer.

Work with Jackson’s Premier Commercial Real Estate Broker – The Estes Group

You want a dependable and proven broker when you want to jump into the commercial real estate investment scene. The team at The Estes Group believes in an investor-focused approach to doing business. We listen to your goals and work with you to find the best solution to accomplish them. Look to us for many services, such as acquisitions, dispositions, leasing, 1031s, multi-family, property and asset management, and much more. Talk with us about all your commercial investment needs in Louisiana, Alabama, Mississippi, and Tennessee.

Call us at 601-362-9633 or contact us online to discuss your real estate goals with our knowledgeable and experienced commercial real estate brokers in Jackson, MS. We’ll

help you find the best choices that will deliver the best return on investment.

When it comes to investing in commercial real estate, you have quite a few options to choose from. Each type offers different returns on your investment and accommodates your level of risk. If you enjoy the residential sector, why not check out multifamily units like duplexes or triplexes? Do you like the industrial scene? Then warehouses may fit your portfolio well.

Avoid jumping into investing on this level without the assistance of a commercial real estate broker in Jackson, MS. At The Estes Group, our team has immense experience and our brokers have their thumbs on the market. Our client-centered approach means we work with you to find your portfolio’s best investments based on your needs and desires. Not only do we serve the Jackson, MS area, but we also cover Alabama, Louisiana, and Tennessee.

8 Categories of Commercial Real Estate to Build Your Portfolio  

Using commercial real estate to effectively build out your portfolio begins by knowing the different types. From there, you can discuss with your commercial real estate broker in Jackson, MS, the best options to attain your specific wealth-building goals. Here are eight categories you can explore:

1. Multifamily – These properties are dwellings for residential tenants that serve as investments for the owners. They include duplexes, triplexes, and quadruplexes. Other options include suburban garden apartments, which are low-rise buildings with 50-400 units and surface parking. Mid-rise and high-rise apartments round out this category as well.
2. Office – You can generally find office buildings in one of three categories: Class A, Class B, or Class C. Each category indicates the type of location and the health of the surrounding market. For example, Class A indicates the best site and construction, whereas Class C properties tend to be less desirable. Other options of office types include central business districts and suburban office buildings.
3. Industrial – These properties range from heavy manufacturing to light assembly, to flex warehouses and bulk warehouses. Each type has its purpose that can easily round out your portfolio.
4. Retail – A few subcategories include strip malls or centers where Mom and Pop style stores exist, generally without an anchor tenant. Another option is a community retail center, which is very large and has multiple anchor stores. You might decide on a power center with several small stores and only a few box retailers, a mall, or a land parcel.
5. Hotels – Here again, you can choose from a few options. Full-service hotels will typically be your big-name hotels. Limited service indicates a business that is smaller with fewer amenities. Finally, extended stay entities with larger rooms and small kitchens designed for people to stay a week or more round out the list.
6. Mixed Use – You may be familiar with these as distinct real estate buildings with retail shops or restaurants on the main floor and offices and residences on the upper floors. These are more commonly found in urban areas.
7. Land – If you are looking for undeveloped lands like farms or pastures, you want greenfield or agricultural land. Vacant lots found in cities are called infill land. Finally, brownfield land includes parcels that were previously used for industrial or commercial purposes. A lot of times, these pieces are suspected to be environmentally impaired because of their previous uses. Your commercial real estate broker in Jackson, MS can provide the right insights and guidance.
8. Special Purpose – This category is your miscellaneous group. Most commonly, you will find amusement parks, bowling alleys, parking lots, stadiums, theaters, and zoos in the group.

Choose Jackson’s Favorite Commercial Real Estate Broker – The Estes Group

Increase your net worth when you choose to work with The Estes Group. We are a boutique investment firm with market knowledge and leadership to help you make a sound real estate decision. We are one of the few Accredited Management Organizations (AMO) in Mississippi. This hard-earned certification means you get the best in investments and property management. Talk with us and learn how we can help you reach the financial success you seek.

Call us at 601-362-9633 or contact us online to discuss your real estate goals with our knowledgeable and experienced commercial real estate brokers. We’ll help you purchase a commercial investment property that delivers the best return on investment.