Connecticut Investment Property
Investing in Connecticut real estate is no different than property investment in any state in the U.S., if, as in most cases the investor requires some type of financing in order to take title to the property or properties involved. The most common financing avenues pursued are:
commercial mortgage
investment property mortgage
receivables financing
business line of credit
business credit card
When applying for a loan from a commercial lender, approval will depend on credit history, additional collateral, if required , etc., much the same as when applying for a personal loan. However, commercial lenders often have stricter criteria for granting Loan approval. If an applicant is denied a loan by a so-called "A" lender, one with the strictest requirements, the applicant may have a second chance for approval with a "B" or "C" classified lender whose requirements will be less strict.
Anyone new to investing in property would be wise to obtain the services of a real estate attorney and registered investment advisor before undertaking a property investment venture. A registered investment advisor can be engaged to find prospective properties for an investor as well.
As an example of the various types of investment properties to be found in Connecticut, as of early 2007, Connecticut commercial property agent listings show the following:
Tarrington: Mixed use income property consisting of seven commercial units and two apartments. Utilities paid by tenants. $795,000
Tarrington: 6,000 sqft commercial building, oversized rooms, fireplaces, 24 car parking. Professional Row location. $365,000
Litchfield: 1500 sqft building housing two commercial stores plus three room second floor apartment. Busy route 202 area. $299,900
Enfield: Apartment/retail building, 31 acres. Built 1920. $529,000
Glastonbury: Single story Class A office building for user/investor, 12,311 sqft. $1,695,000
Cromwell: Drive-thru restaurant. $475,000
New Britain: Two retail buildings on 1.61 acres. 25 parking spaces. $1,300,000
Types of Connecticut investment property can include business parks, stand-alone office or medical buildings, shopping centers, industrial warehouses, apartment buildings or undeveloped land.
Investing in Connecticut properties can be for reasons of diversifying a portfolio, tax benefits, or to build wealth. However, any sort of investing can be risky, particularly for the uninitiated. An astute investor, properly guided, can reap considerable financial reward from commercial Connecticut investment properties for a variety of reasons:
Net income derived from commercial real estate investments tend to be higher than income derived from residential property, partially due to the fact that leases on commercial property generally pass full responsibility to the tenant.
Commercial property owners additionally benefit from the long leases also preferred by commercial tenants. Long leases can enhance property values.
Commercial property leases also involve stronger covenants.
When analyzing an investment property of interest, it is vitally important to carefully consider location and demographics of the area, since these factors can enhance or detract from the investments value.
