Direct
Ownership
Full ownership of commercial properties with complete control over all decisions. Requires significant capital and active management involvement.
What is Direct Ownership?
Direct ownership means purchasing and holding commercial real estate property in your name or through an entity you control. You receive all benefits—and assume all responsibilities—of property ownership.
This approach offers maximum control and potential returns, but requires substantial capital, active involvement, and tolerance for illiquidity. Most direct CRE investors start with smaller properties and scale up over time.
Key Considerations
Capital Requirements
Typically $250,000 to $1,000,000+ for quality commercial properties, plus closing costs, reserves, and renovation funds.
Management Responsibilities
Property maintenance, tenant relations, lease negotiations, rent collection, and financial reporting.
Benefits
Complete control, all cash flow, all appreciation, direct tax benefits including depreciation.
Risks
Concentrated single-asset risk, illiquidity, vacancy impacts, and market downturn exposure.