Are You Really A Twenty First Century Investor?
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 !
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 http://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. http://www.amoneybroker.com/
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