601.362.9633 613 Crescent Circle, Suite 102
Ridgeland, MS 39157

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.

Investing in real estate is a dream for many, and investors across the spectrum have different reasons for doing what they do. Some may want to create a legacy of wealth that will last for generations. Others love the thrill of the hunt and the acquisition of a new investment. It doesn’t matter which end of the investment spectrum you are on. Attaining your financial goals is possible with commercial real estate.

Narrowing your focus makes it possible to catapult your portfolio, allowing you to expand your reach as it grows. The team at The Estes Group understands how different investment opportunities may impair your ability to focus. We believe in a client-centered approach to assist you in obtaining the types of properties that will meet your requirements and achieve your goals. Contact us today to get started with your commercial real estate investments in Jackson, MS.

5 Steps to Determine the Best Commercial Real Estate Niche

You are in the driver’s seat, but even good drivers sometimes need assistance getting to their destination. Here are five steps that can redirect your path and help you get where you want to go:

  1. Decide on Your Investment Goals: What do you want to accomplish with your investments? Are you looking for financial freedom? Do you want a simple recurring income? Maybe you‘d enjoy the large margins from commercial real estate in Jackson, MS, or think playing it safer with multifamily apartment buildings is a better choice. In either case, your goal for the final outcome is what will aid you in the next step.
  2. Choose Your Investment Strategy: Your chosen method will help you in focusing on a specific niche. For example, if you’re interested in residential real estate, you may want to flip houses for profit, or choose a buy-and-hold property. You may also like the idea of developing raw land into structures, such as warehouses, retail outlets, or office buildings.
  3. Dig into Research: This is the most obvious step. Look into the various areas of real estate you’re interested in. It’s important to take your time. This is the perfect occasion to speak with the knowledgeable real estate professionals at The Estes Group to discuss your goals and obtain useful insights into the real estate markets.
  4. Consider the Advantages and Disadvantages: Every decision has its pros and cons. You want to weigh the risks you’ll face and decide which ones you are ready to take. We can assist you with understanding the different risks depending on the type of investment you want.
  5. Get Started! After weighing out all options, it’s time to take action. Make your move and get started. Look into financing options and work with The Estes Group to make that first purchase.

Attain Your Financial Goals with a Clear Focus – The Estes Group Can Help

Work with a commercial real estate brokerage in Jackson, MS who are focused on you and your ambitions. The Estes Group guides you on your next best steps. We offer a wide range of services, including acquisitions, property management, development, and court-appointed receiverships. We serve the entire state of Mississippi, but we also work in Tennessee, Louisiana, and Alabama. Contact us, and let’s get started on your way to growing your financial wealth through investing in commercial real estate in Jackson, MS.

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. Our team knows all the best places to buy properties. We’ll help you with your purchase across the southeast that delivers the best return on investment.