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There is also an increased threat of tenant turnover in business rental agreements. If the lessee’s business model is bad, their product is unattractive, or they’re poor managers, they could declare chapter. The enterprise failure can abruptly cease costly real estate from generating income. There are key variations in residential and business real estate investments. On the one hand, residential real estate is normally inexpensive and smaller than business real estate, and so it is more reasonably priced for the small investor.

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