Joe Fairless knows that demand is strong for access to low-income housing, which includes student housing, senior living, low-income, and military housing – while supply is weak. Include affordable housing in your CRE investment portfolio to take advantage of the associated government tax credits only after you’ve calculated the costs to buy, renovate, and maintain affordable housing.
Consumers will still demand certain products, even during a recession. The industrial asset class will continue to perform well, especially for companies that look to manufacture elastic goods, which include foods and beverages, clothing, electronics, and cars. Suppose you’re looking to add stability to your CRE portfolio. In that case, Joe Fairless suggests you consider industrial real estates like warehouses, manufacturing plants, and storage facilities when you can expect a higher rental yield and a longer rental term.
The growth of eCommerce will certainly continue to drive the need for more manufacturing, fulfillment, and warehousing spaces. So, consider an industrial space with a neutral interior or one that can easily be transformed into an attractive lease option for various industrial tenants.
Joe Fairless knows that commercial real estate offers a stable and passive source of cash flow, but it requires your attention to manage. But, it is worth the time since commercial real estate brings a return on your investment thrice – once at a monthly lease rate, a second time during the tax season, and finally, as the asset will appreciate in the future.