What's on your mind when you think about commercial real estate? Downtown skyscrapers? What are they, corner malls? Apartment complexes? Okay, this is a good first step. But have you given any thought to owning it? You can assume it would be too complex or too expensive but jumping into commercial property investment could be the wisest and most lucrative investment you ever make. To us, the benefits outweigh the risks. But you must figure it out. We break down the great world of business investment into easy-to-follow categories so you can pick your favorites.
We also uncover the top five myths that impede people's ability to invest and understand commercial real estate. Because commercial real estate's worth, depends on the cash flow it generates, we show you how cash flow is done each month, and we help you discover the stages of building wealth in the long run. We also let you know when it's the most cost-effective time to buy, own, sell or post a deposit
Commercial Real Estate vs. Residential Real Estate Comparison.
Commercial real estate is defined as any property that is larger than a house on a lot. For example, commercial real estate consists of small apartment buildings and large office buildings at shopping malls, industrial parks, and even land use planning.
The three major differences between commercial and residential are as follows:
· Commercial real estate projects are passive investments only after putting them into operation. Don't forget that unless you have a ton of money and don't worry about getting massive returns. Commercial property will take a lot of your time and effort to get off the ground. After all, you must handle a lot of things, including the learning process, finding the right mentors or teachers, the search for the correct transaction, the financing of your investment, the selection of management teams, protection against lawsuits, and supervision of the project. The good news is that after you have a commercial project off the ground, it’s usually big enough that it allows you to pay other people to take care of it. So, it's not going to take you very long, which is why we're talking about passive investment. Compare this to a single-family home which may need rent collection and repairs for many years to come.
· All you need is a big business deal so you're ready for life. Making a business deal the right way can generate a benefit multiple times your annual salary. In addition to providing, you with an appreciable monthly income if you are the owner of the property. Residential real estate can produce a sizable profit as well, but it will not generate anywhere near the cash flow that commercial property will. You will receive one cheque per month from a single-family residence, but you can receive hundreds of cheques per month from a commercial institution. If you still don't believe us, consider the following: Our customers told us about their beginnings in commercial real estate. We discovered that one of them is involved in a project that is already making $10 million or more. Another purchased land close to his home for $1.5 million, and its value has risen to $1 million in the last two years.
· The people you find investing in commercial real estate are all great thinkers. These are people who have decided that they want to see big, live big, and socialize with others who are just as passionate about life as they are. Until you get involved, it's hard to figure out how your life might look. Residential real estate investors think about a monthly cheque and a renter, they are waiting for appreciation, and they are restricted in how to create massive value for their property.
Deciding to Invest in Commercial Real Estate
We think commercial real estate investment is an excellent way to generate wealth, and the main reason we love it so much can be summed up in a single word: leverage. Leverage is what allows you to use a small amount of your time and money to provide you with an amplified yield.
Commercial properties are generally larger and of greater value than other types of real estate domains, such as homes. What this means for you is that once you have figured out how to find, negotiate and purchase a commercial property without using much of your own money, you can sit down and watch the magic of leverage do wonders for your financial future. Your family will thank you on behalf of future generations.
When people begin to invest, most of them dream of creating a six-digit annual income so they can stop the rat race. However, at the end of the day, many of them do not think they can do it.
Just don't ever be afraid. The purpose of this book is to give you the initial stages and specific know-how to help you realize that you can live the life of your dreams.