The problem with investing in commercial real estate and apartment buildings in this economy, is that the residents who rent in these types of buildings are struggling to stay above water. This means that your property could go unrented for a long time if you cannot find a suitable renter. You might also have to rent for less, and therefore lose money on your investment. This can be a problem in many parts of the country where the economy is struggling the most.
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Commercial: Supply and demand. We were over built before the economic downturn. Now we are WAY over built.
The problem with investing in commercial real estate and apartment buildings in this economy, is that the residents who rent in these types of buildings are struggling to stay above water. This means that your property could go unrented for a long time if you cannot find a suitable renter. You might also have to rent for less, and therefore lose money on your investment. This can be a problem in many parts of the country where the economy is struggling the most.