Are You Really A Twenty First Century
Investor?
by: Steven Battle
Real Estate Investors that educate themselves about CURRENT
MARKET TRENDS will reap huge returns NOW!!! Information concerning
NEW TRENDS in financial resources will open new and more profitable
real estate opportunities for your business.
Today's residential real estate market for investors
has become very competitive in most major markets. The vast
majority of real estate investing seminars and clubs are encouraging
you to search out desperate home owners or distressed properties
to be rehabbed.
Not to mention the fact that today's disillusioned
stock investors have now realized that residential real estate
investing offers better returns, with less capital risks.
As you seek to identify your lucrative real estate opportunities,
have you noticed that the good deals are getting harder to
find? I am not here to discourage you from investing in real
estate, but would like to share real estate investment opportunities
and information with you…..opportunities that only a
few people are aware of and regularly participate in. That's
right; I am referring to a niche investment market that has
VERY LITTLE competition. This unique information is currently
setting new trends within the commercial real estate investment
community!
I know you are ready for me to tell you about this quiet
niche investment market, so I will...... it is….…….
………..Commercial Real Estate. There are HUNDREDS,
maybe THOUSANDS of niche market investment opportunities within
Commercial Real Estate. And by the way........ the main reason
why so few investors go after commercial real estate, and
that might include yourself, is that you're not convinced
that you would qualify for commercial financing ! ! Most investors
are lead to believe that a 20% down payment is required to
start the process for purchasing commercial properties. WELL,
THIS IS NOT TRUE!
Let's do the math now…… financing a property
that cost $5 Million dollars with 20% down would require you
to put down $1,000,000 and you would still have to add in
legal fees and closing costs. Yes, I know that only a few
investors or even investment groups are able to meet these
down payment requirements. Your first mistake as an investor
would be to go to your local bank to seek financing, or worse,
go to private or hard money lenders. First, remember the banks
are regulated by the federal government and they are required
to underwrite conforming loans and second, bank loans tend
to be very structured and are generally inflexible to your
project needs. In most cases, THESE LOANS will require a 20%
DOWN PAYMENT OR MORE! The only benefit of using private or
hard money lenders is when" NO OTHER FINANCING OPTIONS
EXIST FOR YOU!"
FINANCING is the key ingredient to identifying lucrative
real estate investment opportunities, yet, so few people truly
understand the power of knowing WHERE to find the right financing
and HOW to get it! WHAT IF you had several lenders, today,
that would only require you have 2 to 3% down payments (on
certain qualified projects)… WOULD THIS BE OF INTEREST
TO YOU? A $5,000,000 loan with 2- 3% down payment equates
to putting down $100,000 to $150,000. As an individual investor,
this down payment would still be pretty steep for you however,
today, many residential investors are already joining and
forming Investment clubs to increase and enhance their purchasing
power. TO ALL residential real estate investors....... the
REAL MESSAGE here is that you are closer to buying commercial
real estate than you think! This example should make it clear
to you that finding the right financing is the FIRST step
and the key ingredient to your real estate investing……..
however, there is a PROBLEM.
The problem is that as an investor, you have been trained
to shop for properties FIRST, and almost never for financing.
Finding the right financing FIRST will save you and make you
more money over time, than you purchasing the undervalued
properties and selling them later at or above market prices.
I will repeat this….. MOST REAL ESTATE INVESTORS DO
NOT UNDERSTAND THE IMPORTANCE OF FINANCING within the investment
equation. The ability to save on the amount of the interest
rate you are being charged…. month after month…..
year after year… 2 or 3 % or more is huge. You may also
find out what I already know….. . by securing the financing
first…..THIS OPENS UP NEW INVESTMENT OPPORTUNITIES!
Let's review some of the BENEFITS that come with purchasing
Commercial Real Estate:
1. Unlike residential real estate, commercial real estate's
only purpose is to make money for its investors. If there
was a 7% cap rate on the $5,000,000 sample property, it would
cash flow $350,000 annually.
2. Do you think you would enjoy having professional tenants
with long term leases?
3. Would it excite you if your investment projects qualify
for Non recourse financing?
4. You can totally eliminate the process of rehabbing properties.
5. How about this…… YOU no longer have to chase
tenants down to collect rent.
6. You no longer have to pay penalties to lenders for not
being in owner occupied properties.
7. Expand your investment search throughout all 50 states.
8. Last and probably the MOST BENEFICIAL of all of the perks….You
can qualify to purchase these properties using your commercial
tenant's credit rating, business cash flow and their long-term
rental leases!
In an era where information rules, the small to medium sized
real estate investor can NOW be a "Front Runner"
AND a major player within the commercial real estate market!,
says Steven Battle
We are searching for like -minded real estate investors and
investment clubs that would like to join a Commercial Real
Estate Investor Forum. We welcome that you come and ask your
commercial financing questions and share your investment experiences
with the group. Go to www.amoneybroker.com/ and click on "Join
Our Investor Forum."
About The Author
Steven Battle, Commercial Financing Specialist with Amoneybroker.com,
has over twenty years of experience in financing, property
management, real estate investing, and direct sales.
www.amoneybroker.com
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