Appreciation in Commercial Real Estate Syndications

Consider a single family home how do you know how much a single family home is worth while you look at its neighbor? How much did that house down the street sell for? Okay, well the chances are this single family home is worth about the same. On the other hand, consider a commercial property that generates, let's say $100,000 in income. Since commercial properties are valued based on the income they generate, this property, no matter its location or size is worth far less than 1 that generates casualties 200,000 of income even if they are right next to each other. Since the value of real estate syndications business model is literally based on adding value to the property so that tenants rates can be increased and the property generates more income, this is a great source of appreciation. The comparison between how residential and commercial assets are valued should give you a fresh perspective on how these different types of properties appreciate. What questions do you have about appreciation or real estate syndications? Comment below and let us know.