Commercial real estate often uses unfamiliar and nuanced terms to describe properties as accurately as possible – but these terms aren’t as tedious or confusing as you might think. In fact, most of the time they have straightforward definitions.
Take multifamily property as an example. While it sounds like it should have a complex meaning, it’s just describing a building with more than one residential unit. Multifamily investors often use large or small balance commercial loans to acquire these buildings and add them to their investment portfolio.
But before adding any type of commercial property to your portfolio, you should understand the type of building it is, its projected ROI, and how it fits into your multifamily investing strategy. The property’s asset class describes all of these things.