14 Mar 2008 02:22:53 | 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!
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 Author :
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, Commercial Financing Consultant with Amoneybroker.com