Maarten De Jeu is a renowned corporate development specialist and strategic advisor. He offers knowledge insight in both long and short term reality investment opportunities. In fact, Maarten De Jeu describes the many benefits of utilizing commercial real estate as a mainstay of your investments. In addition, he explains how easy it is to launch real estate investments that can potentially be a profitable hard asset. Likewise, previous investments reserved for the wealthy are now accessible to individual investors.
Commercial reality is a wide category that’s utilized for profit including office buildings, warehouses, multi-use developments, industrial parks, manufacturing structures, apartment buildings and retail space.
The big difference between commercial and residential properties is that commercial property is generally more expensive to buy. As well, commercial property costs more money to build and maintain. Because of the higher cost it makes it harder to take advantage of investment opportunities. However, current changes to property laws have increased the benefits of equity ownership.
Changes in Reality Investment
One of the major changes in reality investment is the Jumpstart Our Business Startups (JOBS) Act in 2012. The passage reduced various restrictions on permitted crowdfunding and small businesses. Now investors are able to have sufficient capital. In effect, investors who are not credited can invest in pre-selected commercial reality for as small as $5,000. In addition, crowdfunded investors can now collect on monthly interest payments that borrowers make on secured loans. Both options allow investors the opportunity to reinvest their gains and to have tax advantages.
Investing in Commercial Reality
Commercial reality investments are not the same as traditional investments like stocks and bonds. This is because it is based on specific assets and doesn’t involve selling due to market fluctuations. Moreover, commercial reality investments are typically insulated from the standard market risk.
Some of the main reasons why practical and successful investors are including commercial reality investments are as follows:
Investment Fees are Minimal – management fees are minimal plus monitoring and tracking asset performance is a lot more economical and efficient.
Protected from Inflation – due to commercial reality property values generally appreciate at a rate higher than inflation. In result, the real estate property is at low risk because it generally sells at a price that calculates the inflation rate alongside the total investment time.
Diversification and Risk Management – commercial reality investments have diversification options. However, traditional investments do not have diversification choices due to the fluctuation of the stock market. In result, monthly returns for commercial reality investments remain stable.
Potential for Short Term Cash Flow – commercial reality investments are not dependent on just long term returns. In fact, monthly tenets will provide short-term cash flow. Equally, short term gain balances the long term investment plan.
A Hard Asset – commercial reality investments is a hard asset that maximizes value and gives a return on your initial investment. In addition, a hard asset can be insured which in turn protects your investment
Volatility is Minimal – a commercial rental lease for a year offers security and a hedge against volatility. This is an extra buffer that you don’t have with regular short or long term investments. Likewise, a five year lease with tenant incentives is even better. Learn more: https://medium.com/@maartendejeu
Tax Advantages – commercial reality investments offer potential tax deductions. For instance, investors are able to deduct the property value for every tax year. The tax break helps with repairs and maintenance costs for the property. Moreover, there is a 20% allowance for a pass-through deduction for investors with a limited liability corporation. In order to take advantage of all the tax deductions, it is best to consult with a tax specialist.
More about Maarten De Jeu
Maarten De Jeu received a Master of Business Administration (MBA) from Oxford University and graduated first in his class. He also founded SVM Business Advisory who advices high net worth individuals and renowned international companies on investment strategies and strategic corporate development.
As well, Maarten De Jeu launched his own company and was the Director of Strategy & Corporate Development for Aviva, PLC. Moreover, De Jeu helped establish SpeakUp®, which offered a solution for reporting and compliance issues with Europe’s publicly traded companies. Maarten De Jeu also serves on the University of Chicago Harris School of Public Policy Dean’s International Council and is a member of Economic Club of Chicago.
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