Why is investing in commercial real estate so profitable? Here are some of the best reasons:
The monthly cash flow very high.
There is a lot less risk than most people realize –- the risk is spread out among multiple tenants.
True passive income: Because the cash flow is so high, you can afford to hire someone to manage your property for you (freeing up your valuable time).
Your profits can be tax free (or at least Tax Deferred – indefinitely) through refinancing or through a secret the IRS doesn’t want you to know about: they call it the “1031 Tax Deferred Exchange”.
Forced appreciation –- that’s just a fancy term for improving a property to increase its value (increasing the amount of cash in your pocket). I’ll show you easy-to-do, low-cost improvements you can do on your properties that add more zeros to the end of your checks!
Much less competition –- Everyone else around you is focusing on single-family homes because No One Else in the country is teaching how to creatively invest in commercial property.
More Cash FlowLet’s use a simple example:Imagine if you were to buy a $250,000 single-family rental house. That $250,000 house may rent for somewhere in the neighborhood of $1,500 per month. The underlying mortgage on that house may be somewhere between $1,000 and $1,400 per month. So you may end up getting between $100 and $500 per month in positive cash flow. Now, let’s take a look at a similar investment from a commercial standpoint. That same $250,000 investment may end up getting you a 10-unit apartment complex, which comes out to $25,000 per unit to acquire the property.Let’s say each of those units were two-bedroom apartments, which could rent in most areas of the United States anywhere between $400 and $600 per month. For simplicity’s sake, let’s use an average of $500 per month. At $500 per month times ten units, you’re bringing in $5,000 per month – more than triple the rent that you could expect to get from that same $250,000 single-family house. Your underlying mortgage payment would be very similar to what you would expect on a residential property; for this example, let’s use $1,400 per month. Your cash flow on this 10-unit apartment building will be $3,600 per month ($5,000 per month income, minus $1,400 mortgage payment). Now that will make a difference in just about anyone’s life!
Less RiskMost importantly, you’re now spreading out the risk over ten tenants, as opposed to one. If your single-family house goes vacant, you’re on the hook for the entire mortgage. Every penny of that mortgage, all of the maintenance, and everything that goes along with it is now your responsibility. If the house is vacant for two months, you’d better be planning on spending a minimum of $2,800 to cover that mortgage plus miscellaneous expenses including maintenance, utilities, taxes, and insurance. Potentially, you’re looking at a very heavy negative cash flow.On the commercial property, however, if one of your ten units goes vacant at $500 per unit, you’ve only lost One tenth of your income. You’re still bringing in $4,500. So you get slightly less positive cash flow but you’re certainly not experiencing negative cash flow. Say three units go vacant –- you’re still covering your mortgage and putting cash in your pockets! Do you see how there is actually less risk in commercial properties?
Passive IncomeIn fact, if you wanted to give away one apartment to an on-site property manager, and maybe pay them a few hundred dollars a month for part-time help, you’d have your property working on auto-pilot and you’d still be making thousands per month –- true passive income!Note: Although these numbers work in most parts of the country, I realize there are certain high-priced areas, notably the west coast and parts of the northeast, where houses start in the $600,000+ range, and $60,000 and up per unit is much more common for apartments. Rest assured that these concepts still work 100% -- only the numbers, and the profits, are larger.
More Than Apartments:Office, Retail, and Industrial/WarehouseThroughout the three days of the Workshop, you’ll be learning about a lot more than just apartment buildings. Apartment buildings are great investments, and we will cover them thoroughly, but if you are only looking at apartments, you are passing by 75% of the opportunity in your market! That’s why we will also cover –- in detail -– investing in office buildings, retail space, and industrial / warehouse opportunities. Each segment of the commercial market has their own unique features, and you will be learning how to be successful in all of them.In fact, knowing how to successfully invest in all four types of commercial property is critical because when apartment buildings are overpriced in your area, office buildings and retail space may be ripe for getting great bargains, or vice versa. By the time you leave this workshop, you will be an expert at all sides of commercial real estate investing. PLEASE NOTE: It’s absolutely critical that you learn how all four major facets of commercial real estate investing work, or you may be walking by millions of dollars in cash that you could have put right into your pockets! The good news is I’ll be covering all four types in depth at the 4-Day Workshop.
Duplicate My Success in a Fraction of the Time Since that first 24-unit apartment building, I’ve had an insatiable appetite to know how I could buy commercial real estate better, turn it around faster, and learn from other people’s mistakes. In fact, I’ve spent thousands of dollars per year on my education -– easily over $50,000 in training over the last 7+ years. My investment in my education was worth every penny because it has made me hundreds of thousands of dollars in profits in my commercial real estate deals. It also showed me all the things I did wrong in the past that cost me tens of thousands of dollars, and how to avoid those mistakes in the future.I have personally bought and partnered on dozens of commercial properties worth over $11 Million, have consulted on hundreds of deals worth over $100 Million, and have evaluated literally thousands of opportunities. I’ve taken all this training and experience and distilled it into an easy-to-learn, step-by-step system that will teach you how to buy, manage, and sell commercial properties practically on auto-pilot, so you can create huge profits on a regular basis and live the lifestyle you want to live!In fact, if I had bought that 24-unit apartment building knowing what I know now, I would have pulled out that $1,057,000 in about 12 months. Maybe 18 months at most -- if I was extremely lazy! I will teach you exactly how to generate a large monthly passive income on your way to your first $1 million in 12 to 24 months. By the time you leave my 4-day Workshop, you will have no doubt that you can do this every day of every week, and make a major change in the quality of your life!
The monthly cash flow very high.
There is a lot less risk than most people realize –- the risk is spread out among multiple tenants.
True passive income: Because the cash flow is so high, you can afford to hire someone to manage your property for you (freeing up your valuable time).
Your profits can be tax free (or at least Tax Deferred – indefinitely) through refinancing or through a secret the IRS doesn’t want you to know about: they call it the “1031 Tax Deferred Exchange”.
Forced appreciation –- that’s just a fancy term for improving a property to increase its value (increasing the amount of cash in your pocket). I’ll show you easy-to-do, low-cost improvements you can do on your properties that add more zeros to the end of your checks!
Much less competition –- Everyone else around you is focusing on single-family homes because No One Else in the country is teaching how to creatively invest in commercial property.
More Cash FlowLet’s use a simple example:Imagine if you were to buy a $250,000 single-family rental house. That $250,000 house may rent for somewhere in the neighborhood of $1,500 per month. The underlying mortgage on that house may be somewhere between $1,000 and $1,400 per month. So you may end up getting between $100 and $500 per month in positive cash flow. Now, let’s take a look at a similar investment from a commercial standpoint. That same $250,000 investment may end up getting you a 10-unit apartment complex, which comes out to $25,000 per unit to acquire the property.Let’s say each of those units were two-bedroom apartments, which could rent in most areas of the United States anywhere between $400 and $600 per month. For simplicity’s sake, let’s use an average of $500 per month. At $500 per month times ten units, you’re bringing in $5,000 per month – more than triple the rent that you could expect to get from that same $250,000 single-family house. Your underlying mortgage payment would be very similar to what you would expect on a residential property; for this example, let’s use $1,400 per month. Your cash flow on this 10-unit apartment building will be $3,600 per month ($5,000 per month income, minus $1,400 mortgage payment). Now that will make a difference in just about anyone’s life!
Less RiskMost importantly, you’re now spreading out the risk over ten tenants, as opposed to one. If your single-family house goes vacant, you’re on the hook for the entire mortgage. Every penny of that mortgage, all of the maintenance, and everything that goes along with it is now your responsibility. If the house is vacant for two months, you’d better be planning on spending a minimum of $2,800 to cover that mortgage plus miscellaneous expenses including maintenance, utilities, taxes, and insurance. Potentially, you’re looking at a very heavy negative cash flow.On the commercial property, however, if one of your ten units goes vacant at $500 per unit, you’ve only lost One tenth of your income. You’re still bringing in $4,500. So you get slightly less positive cash flow but you’re certainly not experiencing negative cash flow. Say three units go vacant –- you’re still covering your mortgage and putting cash in your pockets! Do you see how there is actually less risk in commercial properties?
Passive IncomeIn fact, if you wanted to give away one apartment to an on-site property manager, and maybe pay them a few hundred dollars a month for part-time help, you’d have your property working on auto-pilot and you’d still be making thousands per month –- true passive income!Note: Although these numbers work in most parts of the country, I realize there are certain high-priced areas, notably the west coast and parts of the northeast, where houses start in the $600,000+ range, and $60,000 and up per unit is much more common for apartments. Rest assured that these concepts still work 100% -- only the numbers, and the profits, are larger.
More Than Apartments:Office, Retail, and Industrial/WarehouseThroughout the three days of the Workshop, you’ll be learning about a lot more than just apartment buildings. Apartment buildings are great investments, and we will cover them thoroughly, but if you are only looking at apartments, you are passing by 75% of the opportunity in your market! That’s why we will also cover –- in detail -– investing in office buildings, retail space, and industrial / warehouse opportunities. Each segment of the commercial market has their own unique features, and you will be learning how to be successful in all of them.In fact, knowing how to successfully invest in all four types of commercial property is critical because when apartment buildings are overpriced in your area, office buildings and retail space may be ripe for getting great bargains, or vice versa. By the time you leave this workshop, you will be an expert at all sides of commercial real estate investing. PLEASE NOTE: It’s absolutely critical that you learn how all four major facets of commercial real estate investing work, or you may be walking by millions of dollars in cash that you could have put right into your pockets! The good news is I’ll be covering all four types in depth at the 4-Day Workshop.
Duplicate My Success in a Fraction of the Time Since that first 24-unit apartment building, I’ve had an insatiable appetite to know how I could buy commercial real estate better, turn it around faster, and learn from other people’s mistakes. In fact, I’ve spent thousands of dollars per year on my education -– easily over $50,000 in training over the last 7+ years. My investment in my education was worth every penny because it has made me hundreds of thousands of dollars in profits in my commercial real estate deals. It also showed me all the things I did wrong in the past that cost me tens of thousands of dollars, and how to avoid those mistakes in the future.I have personally bought and partnered on dozens of commercial properties worth over $11 Million, have consulted on hundreds of deals worth over $100 Million, and have evaluated literally thousands of opportunities. I’ve taken all this training and experience and distilled it into an easy-to-learn, step-by-step system that will teach you how to buy, manage, and sell commercial properties practically on auto-pilot, so you can create huge profits on a regular basis and live the lifestyle you want to live!In fact, if I had bought that 24-unit apartment building knowing what I know now, I would have pulled out that $1,057,000 in about 12 months. Maybe 18 months at most -- if I was extremely lazy! I will teach you exactly how to generate a large monthly passive income on your way to your first $1 million in 12 to 24 months. By the time you leave my 4-day Workshop, you will have no doubt that you can do this every day of every week, and make a major change in the quality of your life!
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