Are you an investor searching for potential income opportunities? Do you wish to have the lifestyle that you’ve always wanted without having to kill yourself working? If you’ve answered yes to any of these questions, then let us help you by exploring commercial real estate investing and why it could be your gateway to wealth and financial freedom.
What is Commercial Real Estate?
The term commercial property is a broad term, but most often refers to buildings or land intended to generate profits. This can come from either capital gains or rental income. Commercial property includes office buildings, medical centers, hotels, malls, retail stores, farmland, multifamily housing, warehouses, and many other kinds of real estate. Although some companies own the buildings they occupy, still many others are content to pay rent.
Typically, commercial properties are leased for long-term use, a favorable situation for both lessor and lessee. The lessor is assured of a constant income in the form of the lessee, while the lessee can lock in prices in the face of rising market rates.
So Why Invest in CREs?
Ever wonder why the ultra-wealthy often invest a large percentage of their portfolio into commercial real estate? Its because real estate is safe, its proven, and its efficient. Most rich people have either made their wealth or hold their wealth in real estate. It’s the age-old method of building wealth and its surprising more people aren’t taking advantage of it.
If you want to build significant wealth, there are few better ways to do it than with commercial real estate. For those in the know, its surprisingly easy. Real estate values, for the most part, are always going to go up. Although prices fluctuate along the way, well purchased real estate assets that are taken care of and managed well will always generate significant value.
Here are some more reasons why:
- It’s more affordable now. Commercial real estate investing used to be the domain of the ultra-rich because it entailed having big capital. First, for buying the property and second, for renovating or outfitting it properly for its purpose.
It doesn’t have to be that way anymore. There are other ways now to invest in commercial real estate without outright property ownership. These include real property crowdfunding, real estate investment trust share purchasing, and direct real estate investing. While not cheap, it’s much less expensive than buying up a property by yourself.
- Reduced cash flow volatility. Commercial lease agreements can cushion the impact of events such as property recessions. Imagine going through a property recession but still having a steady flow of income from your long-term tenants. Commercial leases are often backed with a personal guaranty from the lessee. If you don’t own the property but are a share investor, the cash flow remains steady with monthly, quarterly, or annual distributions.
- Little relation to the stock market. CREs are less prone to world news and events, unlike stocks. A drop in the equity market will not automatically influence your real estate investment.
- They’re tangible assets. Again, unlike stocks, these hard assets will not suddenly lose all of their value. You can also maximize their worth by developing the property further, and as a result of that, be able to charge higher rents in the future. Increased rents equals increased values and increased cash flow.
- High earning potential. Commercial real estate offers a decent return on investment, as long as the property is kept up and maintained well. These properties generally make anywhere from 8% to 14% cash on cash returns annually plus appreciation, which is a much better rate when you compare them to how much residential properties earn—at most 4%. Our CRE investments return on average 18% IRR with average cash on cash returns of 12%.
- Time Freedom. While investing in commercial property does not mean that your work ends with the initial sale/share investment, it also does not mean you have to put in eight hard hours a day. You can enjoy residual revenue with time freedom, especially if you have invested with a syndicator like Victor Whitmore to do most of the day-to-day work for you.
There are many ways to create wealth, but one of the simplest, most effective and lucrative ways to do so is in commercial real estate.
Call me today if you are interested in growing your wealth.
I grew up poor in a small town in New York, but I always had a burning desire inside of me to become wealthy and help get my family out of poverty. After years of working really hard and trying many different things, I discovered real estate investing and how to create passive income and real wealth. Today, my passive income is six figures a month giving me time freedom and financial freedom to enjoy life!
I’ve built a $100+ million dollar real estate portfolio with property in six states and now I want to show you how real estate investing can help make your financial dreams come true. I don’t have anything to sell, but if you are like I am and you hunger for financial freedom and more time, I can show you how to do that with real estate investing.