{"id":8562,"date":"2018-03-21T15:15:39","date_gmt":"2018-03-21T22:15:39","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=8562"},"modified":"2018-03-16T09:02:51","modified_gmt":"2018-03-16T16:02:51","slug":"commercial-real-estate-vs-residential-property","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/","title":{"rendered":"Commercial Real Estate vs Residential Property"},"content":{"rendered":"<p style=\"text-align: justify;\">Investing in commercial real estate is widely considered more trouble than it\u2019s worth, but according to Sam Beckford, founder of Successful Property Strategies, not only is it vastly more lucrative than investing in residential, it\u2019s a lot easier than people think.<\/p>\n<p style=\"text-align: justify;\">Beckford is a Vancouver-based investment coach and author of four books about small businesses and business coaching that have been translated into nine languages, and he owns three commercial properties worth $14.5mln that have only $1.68mln left of repayment. A major reason he\u2019s keen on being a commercial real estate landlord, aside from the positive cash flow he maintains, is stability.<\/p>\n<p style=\"text-align: justify;\">\u201cOne of my tenants is the federal government of Canada,\u201d he said of the Service Canada office in his building. \u201cThat lease is worth about $1.3mln in payments. Other tenants signed five-year leases with five-year renewals. In their previous office, Service Canada was in that building for 26 years, so to have a single tenant who has the potential of that long of a lifespan is unheard of in residential.\u201d<\/p>\n<p style=\"text-align: justify;\">Moreover, residential landlords don\u2019t have nearly as many rights as their tenants, but because commercial leases are longer and, therefore, more instructive, landlords more often than not emerge from litigation unscathed.<\/p>\n<p style=\"text-align: justify;\">\u201cYou\u2019re also dealing with contracts, not people,\u201d explained Beckford. \u201cThat\u2019s huge because when it comes to people having horror stories with bad tenants and bad management, the courts side with the tenants because they think they\u2019re being taken advantage of, but with commercial properties, you\u2019re dealing with 30-, 40-page contracts that clearly define everybody\u2019s responsibilities and rights, and courts typically side with the landlord.<\/p>\n<p style=\"text-align: justify;\">\u201cBut usually it doesn\u2019t get to that because the lease is so defined. With residential properties, even if the tenant is doing something illegal, or borderline illegal, you can\u2019t evict them because it\u2019s their home, but with commercial you can lock the doors.\u201d<\/p>\n<p style=\"text-align: justify;\">The key to finding a good investment property is finding one with chronic vacancy because that\u2019s a bargaining chip. But, advises Beckford, plan ahead.<\/p>\n<p style=\"text-align: justify;\">\u201cI find buildings\u2019 weaknesses and see them as strengths, because it\u2019s strength in negotiating,\u201d said Beckford. \u201cI\u2019ll have a tenant lined up before even putting an offer in, and have them committed if I get the building, and then I\u2019ll do the offer based on having that tenant in my pocket. Commercial investors avoid vacancy like the plague because a property is only valuable if you have a stream of income. But if you can get the right stream\u2014and more importantly, combine the right stream of income and getting tenants who contribute to each other\u2019s success\u2014you have a long-term formula for profitability.<\/p>\n<p style=\"text-align: justify;\">\u201cIt\u2019s like opening up a truck rental business next to Home Depot.\u201d<\/p>\n<p style=\"text-align: justify;\">Another major boon to being a commercial landlord is that tenants typically look after the property because it is, after all, their place of business. While there\u2019s precious little to incent a residential tenant to look after the home they\u2019re renting, commercial tenants have put their life savings into their ventures.<\/p>\n<p style=\"text-align: justify;\">\u201cThey take care of the place because they\u2019re running a business. I had a karate studio that opened up and they spent over $150,000 improving the space, and the renovations they made would be valuable to a future tenant if they ever moved out. It\u2019s impossible to fathom that a residential tenant would spend money on your space and improve your residential unit.<\/p>\n<p><a href=\"https:\/\/www.canadianrealestatemagazine.ca\/news\/why-commercial-real-estate-is-more-lucrative-than-residential-sector-239186.aspx\" target=\"_blank\" rel=\"noopener\">Why Commercial Real Estate is More Lucrative Than Residential Sector<\/a> by Neil Sharma | Canadian Real Estate Wealth<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investing in commercial real estate is widely considered more trouble than it\u2019s worth, but according to Sam Beckford, founder of Successful Property Strategies, not only is it vastly more lucrative &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-8562","post","type-post","status-publish","format-standard","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commercial Real Estate vs Residential Property &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Commercial Real Estate vs Residential Property &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Investing in commercial real estate is widely considered more trouble than it\u2019s worth, but according to Sam Beckford, founder of Successful Property Strategies, not only is it vastly more lucrative &hellip; [read more]\" \/>\n<meta name=\"twitter:creator\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:site\" content=\"@RoryClipsham\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rory Clipsham\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/03\\\/commercial-real-estate-vs-residential-property\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/03\\\/commercial-real-estate-vs-residential-property\\\/\"},\"author\":{\"name\":\"Rory Clipsham\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"headline\":\"Commercial Real Estate vs Residential Property\",\"datePublished\":\"2018-03-21T22:15:39+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/03\\\/commercial-real-estate-vs-residential-property\\\/\"},\"wordCount\":607,\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"articleSection\":[\"Real Estate\"],\"inLanguage\":\"en-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/03\\\/commercial-real-estate-vs-residential-property\\\/\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/03\\\/commercial-real-estate-vs-residential-property\\\/\",\"name\":\"Commercial Real Estate vs Residential Property &#8226; Rory C Real Estate | Oakwyn Realty\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\"},\"datePublished\":\"2018-03-21T22:15:39+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/03\\\/commercial-real-estate-vs-residential-property\\\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/03\\\/commercial-real-estate-vs-residential-property\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/2018\\\/03\\\/commercial-real-estate-vs-residential-property\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Commercial Real Estate vs Residential Property\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/\",\"name\":\"Rory C Real Estate | Oakwyn Realty\",\"description\":\"Rory C Real Estate Updates | Home Selling &amp; Buying\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/#\\\/schema\\\/person\\\/0672b9777e67473b9bd9247df49499c7\",\"name\":\"Rory Clipsham\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"url\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"contentUrl\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\",\"width\":504,\"height\":504,\"caption\":\"Rory Clipsham\"},\"logo\":{\"@id\":\"https:\\\/\\\/www.roryc.ca\\\/blog\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/RoryC-white-w-tagline.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.roryc.ca\\\/\",\"https:\\\/\\\/www.facebook.com\\\/pg\\\/BurnabyandCoquitlamHomes\\\/about\\\/?ref=page_internal\",\"https:\\\/\\\/www.instagram.com\\\/roryclipshamhomes\\\/\",\"https:\\\/\\\/x.com\\\/RoryClipsham\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Commercial Real Estate vs Residential Property &#8226; Rory C Real Estate | Oakwyn Realty","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/","twitter_card":"summary_large_image","twitter_title":"Commercial Real Estate vs Residential Property &#8226; Rory C Real Estate | Oakwyn Realty","twitter_description":"Investing in commercial real estate is widely considered more trouble than it\u2019s worth, but according to Sam Beckford, founder of Successful Property Strategies, not only is it vastly more lucrative &hellip; [read more]","twitter_creator":"@RoryClipsham","twitter_site":"@RoryClipsham","twitter_misc":{"Written by":"Rory Clipsham","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/#article","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/"},"author":{"name":"Rory Clipsham","@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"headline":"Commercial Real Estate vs Residential Property","datePublished":"2018-03-21T22:15:39+00:00","mainEntityOfPage":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/"},"wordCount":607,"publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"articleSection":["Real Estate"],"inLanguage":"en-CA"},{"@type":"WebPage","@id":"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/","url":"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/","name":"Commercial Real Estate vs Residential Property &#8226; Rory C Real Estate | Oakwyn Realty","isPartOf":{"@id":"https:\/\/www.roryc.ca\/blog\/#website"},"datePublished":"2018-03-21T22:15:39+00:00","breadcrumb":{"@id":"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.roryc.ca\/blog\/2018\/03\/commercial-real-estate-vs-residential-property\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.roryc.ca\/blog\/"},{"@type":"ListItem","position":2,"name":"Commercial Real Estate vs Residential Property"}]},{"@type":"WebSite","@id":"https:\/\/www.roryc.ca\/blog\/#website","url":"https:\/\/www.roryc.ca\/blog\/","name":"Rory C Real Estate | Oakwyn Realty","description":"Rory C Real Estate Updates | Home Selling &amp; Buying","publisher":{"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.roryc.ca\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":["Person","Organization"],"@id":"https:\/\/www.roryc.ca\/blog\/#\/schema\/person\/0672b9777e67473b9bd9247df49499c7","name":"Rory Clipsham","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","url":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","contentUrl":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg","width":504,"height":504,"caption":"Rory Clipsham"},"logo":{"@id":"https:\/\/www.roryc.ca\/blog\/wp-content\/uploads\/2019\/10\/RoryC-white-w-tagline.jpg"},"sameAs":["http:\/\/www.roryc.ca\/","https:\/\/www.facebook.com\/pg\/BurnabyandCoquitlamHomes\/about\/?ref=page_internal","https:\/\/www.instagram.com\/roryclipshamhomes\/","https:\/\/x.com\/RoryClipsham"]}]}},"_links":{"self":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/8562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/comments?post=8562"}],"version-history":[{"count":1,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/8562\/revisions"}],"predecessor-version":[{"id":8563,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/posts\/8562\/revisions\/8563"}],"wp:attachment":[{"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/media?parent=8562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/categories?post=8562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.roryc.ca\/blog\/wp-json\/wp\/v2\/tags?post=8562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}