Investing in commercial real estate can be a great way to diversify your portfolio and generate passive income. Commercial real estate offers investors the potential for higher returns than residential investments, but it also comes with additional risks. That’s why it’s important to understand all of the different ways you can invest in commercial real estate before jumping in headfirst. In this blog post, we will explore five of the most popular methods for investing in commercial real estate: direct ownership, REITs, crowdfunding platforms, joint ventures and private equity funds. Read on to learn more about each strategy and decide which one might work best for you!

Direct Ownership

Direct ownership involves purchasing commercial real estate directly from a seller. This method can be very lucrative as long as you have the capital to invest and the resources to manage your property properly. You will need to conduct extensive due diligence on any potential properties, consult with experienced professionals, and analyze local markets in order to find a property that has the potential to generate a strong return on your investment.


A real estate investment trust (REIT) is a company that owns and operates income-producing commercial properties, such as office buildings, hotels, shopping centers, and apartments. When you invest in a REIT, you are essentially investing in a portfolio of income-producing properties and receiving a share of the rental income it generates. REITs are typically less risky than direct ownership but offer lower returns due to their dividend payments.

Crowdfunding Platforms

Crowdfunding platforms allow investors to pool their money together and invest in commercial real estate projects as a group. These platforms provide access to deals that would otherwise be too expensive for a single investor and also offer the potential for higher returns. However, it is important to understand the risks associated with crowdfunding before investing – as these investments are highly speculative and not insured by any government agency.

Joint Ventures

A joint venture is when two or more investors team up to purchase commercial real estate. This can be a great way to reduce risk as the profits and losses are split among the investors. Additionally, joint ventures allow investors with limited financial resources or experience to join forces with more experienced and well-funded partners.

Private Equity Funds

Private equity funds invest in commercial real estate projects on behalf of high net worth individuals, institutions, and corporations. These funds typically invest in larger projects that offer higher returns than other types of investments. However, these investments also come with significant risk as the fund manager has complete discretion over how to invest the money and there is no guarantee of returns.

No matter which method you choose for investing in commercial real estate, it is important to understand the risks and rewards associated with each strategy. Additionally, it is essential to work with experienced professionals who can help you navigate the complexities of this asset class. With a little research and proper guidance, commercial real estate investing can be an incredibly lucrative way to diversify your portfolio and generate passive income. Porter Capital Group offers a wide range of financing options for commercial real estate investors. Contact our offices today to get the funding you need.