When it comes to evaluating and securing an investment in the commercial real estate market, there are generally two distinct types of investors – those that look to own and operate a property and those who want exposure from an investment perspective only. The first seeks to understand how the actual ownership and operating side of the business works, i.e. how to identify, underwrite, perform due diligence, structure a closing, and acquire an asset. The second simply wants to understand how and where to invest their money for the best rate of return without the hassle of having to do everything themselves. In general, there are four ways investors can access and invest in commercial real estate deals.
The first way to invest is arguably the most complex. Here’s why.