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Lower Your Risks With Commercial Real Estate Investing |
By:
Dike Drummond |
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Lower your Risks with Commercial Real Estate Investing
by Dike Drummond
Risk is the Enemy - Greenspan is the Devil
A couple of months ago the Stock Market did a major overnight Swoon....
The "R" word - "Recession" came out of Alan Greenspan's mouth
* The Chinese stock market tanked while we were sleeping
* Dow Jones lost 416 points as if falling right off a cliff
* AND all the other major stock indexed tumbled in unison
Bottom line is $583 Billion in wealth evaporated in a single day - in the US alone, because of one retired government official saying one word.
Now your stock broker will still tell you the markets are safe despite these "fluctuations" and try to convince you that Real Estate Investing is much more risky. It is the same tune they sang while the markets went through the Dot-Bomb melt down.
I just smile and remember the benefits of being a "Greenspan-Proof" Real Estate Investor ...
*You Know Your Profit When You Buy*
You know what you will pay for the property. You know how you will upgrade the buildings and the tenants ... so you can calculate your profits before you actually purchase the property.
You can research property values, expected rents and all the other variables involved and get a very good idea of the price you can sell at given the increase in cash flow you can force.
*Cash Flow - Your Favorite Sleeping Pill*
You get a check every month, no matter what happened in Alan Greenspan's latest press conference.
You can wrap your brain around and control all the factors that bring you that monthly check. Raise the rents and lower the expenses to force appreciation in the property in addition to the steady income stream.
*Leverage Like No Other Investment*
You can buy $100 in property for $20 down and it doesn't even have to be your money.
Just imagine going in to Merrill Lynch with $2000 from one of your investor friends and ask to buy $10,000 of stock. They flat out would not know how to respond.
Yet with $200K of your investor's money, you can buy a $1M apartment complex in any State in the Country - any day of the year.
*Tax Bennies*
There is no other investment where you can get a deduction on your taxes - for year upon year - while your property continues to go up in value. Depreciation is the Real Estate Investor's secret weapon.
Compare that with Mutual Funds where you might even owe taxes in years where the fund lost money. That's a real safe investment all right.
So when you are sifting through deal after deal, looking for the property that is going to make you good money year after year, just remember all the benefits of direct ownership of real estate.
Forget the former Head of the FED and the market's drop.
Remember you depreciation, your leverage and your cash flow and put on a grin like the Cheshire Cat.
And at night, when you are ready for bed, you can forget about the market's ups and downs and sleep well knowing your assets are in real estate.
Considering investing money in the Dow Jones any time soon? - Wait a minute!. Learn how Commercial Property Investment can increase your Cash Flow and Safety. This and other unique content 'Commercial Real Estate Investing' articles are available with free reprint rights.
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Article Source: http://www.statssheet.com/articles/article54017.html |
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