“Generational wealth” has become a buzz word, especially among millennials and generation z. But what does it mean to truly build wealth? There are various wealth-building investment vehicles. Renown strategic business advisor Maarten de Jeu informs us of how we can increase our wealth by investing in Commercial Real Estate (CRE).
Who is Maarten De Jeu?
Upon receiving his undergraduate degree from Leiden University, Maarten continued his education at the University of Oxford. He ranked first in his class and received a Masters’s degree in Business Administrative (MBA). After graduating, De Jeu has worked at Aviva pic, a British multinational insurance company, as the Director of Strategy and Corporate Development. He also worked with TVDK Management Consultants as a consultant, collaborating with noteworthy brands such as Heinz and Sara Lee. De Jeu also has a role in founding two successful companies, SpeakUp, and SVM Business Advisory.
During his free time, de Jeu enjoys spending time with his family, playing tennis, and dedicating his time to various community and business associations.
What is Commercial Real Estate?
The two common forms of real estate are commercial and residential properties. When investing in real estate you can either increase your wealth by selling the property after the value appreciates over time or by collecting rental income. Residential real estate is the property that is intended to be utilized as a living space. Commercial real estate can be defined as property primarily used for business purposes.
What are the Benefits of Commercial Real Estate?
Before committing to commercial real estate as your wealth-building investment vehicle, it is important to note that there is some degree of risk involved with any investment and you must always do your due diligence.
Advantages of investing in commercial real estate
- Smaller market: The steep learning curve and regulations associated with commercial real estate causes the market to be less saturated than residential real estate.
- Increased Wealth: Commercial property tenants generally sign a three to five-year lease agreements thus resulting in more cash flow. The return on investment for commercial property is also 3-6 times more than residential. With increased cash flow and the potential to have a higher return on your investment, the chances of building wealth with commercial real estate are much larger.
- Owner Benefits: Tenants often sign a ‘triple net lease’ that makes them responsible for paying the building’s maintenance fees, insurance, and property taxes, thus relieving the owner of the financial burden. Learn more: https://www.behance.net/maartendejeu
Maarten de Jeu’s Tips
Building the proper networks with other real estate investors and private lenders play a significant role in your success in the realm of commercial real estate.
It is important to establish your credibility with sellers and lenders. You may want to consider curating a small business plan that will help establish your credibility and competitive advantage.
Knowledge is key. You must have the ability to understand the metrics when analyzing potential commercial properties.
DO YOUR DUE DILIGENCE. Research is essential. Gather as much information about the property, the market, sellers, lenders, regulations, and the location as you can!