When investing in real estate, there are generally two main goals: capital growth or positive cash flow.

The overall investment goal will help to determine the best strategy for an investor to pursue in order to achieve the desired outcome.

Investors who are seeking capital growth will typically consider a residential-based investment.

Those wanting cash flow, however, will more often turn to commercial real estate investment options.

Take a look at this week’s video for hypothetical examples of the true return on both residential and commercial investments

Regardless of your goal, it’s important to understand the true return on your capital with each of these investments.

It’s common for data to be reported with return and capital growth based on the asset value.

However, as an investor you need to consider what funds you’ve put into the asset and what that translates to as return or growth on your capital only.

At Kollosche Commercial, we have the expertise and experience to discuss your investment goals in-depth and suggest a range of options to match your goals.

Reach out to Adam Grbcic or Tony Grbcic for a conversation, we’re happy to help.