Industrial Process

Are You Really A Twenty First Century Investor?

September 10th, 2009

Are You Really A Twenty First Century Investor?

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.

Todays 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 todays 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. Thats 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!

Lets do the math now financing a property that cost 5 Million dollars with 20 down would require you to put down 1000000 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 5000000 loan with 2 3 down payment equates to putting down 100000 to 150000. 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!

Lets review some of the BENEFITS that come with purchasing Commercial Real Estate:

Unlike residential real estate commercial real estates only purpose is to make money for its investors. If there was a 7 cap rate on the 5000000 sample property it would cash flow 350000 annually.
Do you think you would enjoy having professional tenants with long term leases?
Would it excite you if your investment projects qualify for Non recourse financing?
You can totally eliminate the process of rehabbing properties.
How about this YOU no longer have to chase tenants down to collect rent.
You no longer have to pay penalties to lenders for not being in owner occupied properties.
Expand your investment search throughout all 50 states.
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 longterm 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 writer:

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/