- Gas stations: when you buy a gas station, you buy both real estate and the gas station business. Office Buildings: these properties are single or multi-story buildings.
- Single-tenant buildings: the properties are used as corporate headquarters of big corporations like Cisco.
- Multi-tenant buildings: these properties are leased by small businesses, e.g. real estate, tax accountants. Investors who purchase these properties want to spread out the investment risks.
- Leases: The leases for office building vary from full service [landlords pay property tax, insurance, maintenance and utilities] to NNN [tenants pay property tax, insurance, maintenance and utilities].
- Medical buildings: these properties are leased primarily by doctors and dentists. Some investors prefer medical buildings as medical tenants are very recession proof.
- Single-tenant building: The advantage is you just have to work with one tenant. The tenants pay a base rent and reimburse the landlord for property taxes, insurance, maintenance and sometimes even property management fees. The NNN lease in a sense is a litmus test on whether the property is in high demand by tenants or not.
- Ground Lease: occasionally a retail center with ground lease is for sale. Once the ground lease expires and the land owner refuses to extend the land lease, you own nothing! New York City is the ideal place for business. Finding great space for your business is a doable undertaking. There are properties that have great street presence for retail and similar business. NYC offers all sizes of commercial space. You can find very affordable and prime commercial real estate both to lease and to buy. Certain property groups can direct you to high value properties in great areas that won't cost as much. You may have a lifelong dream of housing your business in Rockefeller Center or A Trump property.
Land: the people who invest in raw land often hope to buy agricultural land near commercially-zoned land at a few thousand dollars per acre. You should consider invest in land if youIf one of your investment objectives is to get high cash flow, you may want to stay away from apartments. In general, apartments are easy to buy and harder to sell. Special Purpose Properties: These are properties designed for a specific business, e.g. restaurants, gas stations, and hotels/motels.The restaurant operators sell the real estate to investors higher cap rate and lease back the property for 20 years. They in turn use the sale proceeds to expand their business by building more restaurants.
Understanding the seller's motives can be a powerful negotiating tool.