Personally, I prefer investments that I can see, touch, and feel.  I prefer tangible things, that are not denominated in currency that is subject to inflation and devaluation.  Rather than receiving a periodic paper report with a subjective determination of the value of my investment that is difficult to verify – until its too late, I prefer investments that I can manage and control.  Commercial Real Estate meets that criteria.

Tax professionals know that real estate as an investment receives favorable treatment for income tax purposes.  Though the value of the investment continues to appreciate, the Federal income tax code allows investors to write off the cost of their investment in the form of accelerated depreciation.  This treatment helps to front-load the timing of the cash return of your investment.  In addition, there are ways to segregate the cost of real estate investments to allow further accelerated depreciation treatment.

It’s no coincidence that the most wealthy families happen to hold much of their investments in the form of commercial real estate.  Over time, its proven to be the most stable form of investment – providing ever increasing cash flow that transcends generations.