This Free Report outlines Why You Should Be an Owner of commercial real estate.
It goes into cash flows, tax advantages of owning commercial real estate and more.
Original Title
Why You Should Be an Owner of a Commercial Real Estate - Free Report
This Free Report outlines Why You Should Be an Owner of commercial real estate.
It goes into cash flows, tax advantages of owning commercial real estate and more.
This Free Report outlines Why You Should Be an Owner of commercial real estate.
It goes into cash flows, tax advantages of owning commercial real estate and more.
Thanks for downloading my special report youre in for a real treat.
Before I go over the ... Why You Should Be An Owner of A Commercial Investment Property Id like to back up and cover the basics of why you should be looking at commercial real estate in the rst place. There are a lot of places you can invest these days, and you should know the reasons WHY before you move forward. Even if youre doing a No Money Down deal, youre going to be investing time and energy into the project, and you will be a whole lot better off if you are made aware of the 7 Most Common Mistakes Investors Make When They Buy a Commercial Income Property ..... .... Lets get started. Why You Should Be An Owner of An Apartment Building Or Commercial Investment Property By Paul Forsberg, Investor/Broker Lets be honest with each other for a minute. If I was a stockbroker I would tell you all of the reasons you need to buy stocks. If I was a bond broker, I would tell you all of the reasons you need to be in bonds. If I was in annuities, I would tell you all of the reasons you need to be in annuities. Get the picture? Everyone loves their investment especially if they make money in the form of fees or commissions by having you buy it. Page 1 Copyright Paul Forsberg 2013 Reprint permission contact Paul@FLCRES.com www.FloridaCommercialRealEstateServices.com 2485 Jen Dr. #1 Melbourne, FL 32940 (321) 300-6123 I have been a real estate owner and investor since 1988. In 1999, I upped my game and began developing, brokering real estate in one of the most afuent places in the country. East Hampton, NY. aka: The Hampton's. I have developed, built, brokered, advised and worked with some of the most afuent people in the world. Being an admirer of the afuent, I like to ask a lot of questions on their successes and do my best to learn from them. (you woulJ be omozeJ ot tbe informotion people will sbore witb you if you simply osk tbem bow tbey JiJ wbot tbey JiJ. lt is olso on omozinq soles stroteqy. People olwoys osk tbe weoltby FOR sometbinq - l leorneJ eorly on never osk FOR - only osk HOV, onJ tben sbut up onJ listen!) I have seen what riches and tax advantages are produced from the people who own commercial real estate investments. And let me tell you this: NOTHING, and I mean NOTHING compares. Personally, I have made and lost millions on Real Estate, and I can tell you from personal experience, the biggest mistake I made was selling the boring income producing real estate I owned. (l went from on lnvestor to o Flipper onJ TroJer - BlG Mistoke) The stuff that paid me monthly to own it, the stuff that pumped out monthly cash ow and I sold to to raise more cash so I could buy and sell homes and vacant land for the big hits. Well, when the real estate market corrected, my plan stopped working and I had no more income producing real estate. A HUGE mistake which I am now correcting and investing every single spare minute of my day, and penny I make into acquiring commercial income properties. Some of you reading this prefer apartment buildings, others strip centers, self storage facilities, retail stores, medical buildings, or professional buildings. Page 2 Copyright Paul Forsberg 2013 Reprint permission contact Paul@FLCRES.com www.FloridaCommercialRealEstateServices.com 2485 Jen Dr. #1 Melbourne, FL 32940 (321) 300-6123 There are 3 types of people in real estate 1) Flippers 2) Traders 3) Investors Flippers have a job and need to work every day Traders jump from one deal to another - all based on yield Investors, on the other hand are in it for the long haul. They take along term view - they own real estate because it pays them monthly and gives them HUGE tax advantages. Commercial Income property share one thing in common: They Produce Income And The Value Is Based On The Net Income Produced. Bottom line .... Owning a commercial investment property will grow your wealth exponentially. Please follow what I said here because it is super important. Apartments and commercial investment property are like three or four investments wrapped up in one all working together at the same time. Real Quick, lets take a look at and compare a real estate investment with a stock. Lets say I buy 100 shares of ABC Corporation at $1.00 per share. So, I have $100 invested into ABC Corporation. $1.00 X 100 shares owned = $100. Five years later, if the market was good, lets say that my $1.00 per share is now worth $1.50 per share. My $100 investment is now worth $150.00. I have made a 50% return on my money over the 5 years or a 10% annual return. Not too bad. Now, if I sell I will obviously prot and have to pay capital gains taxes to Uncle Sam, not to mention some state taxes as well (depending where you live). So, all that really happened here is that my investment appreciated and I paid capital gains taxes when it sold. This is purely an appreciation and capital gains type of investment. My overall return in this example, will be less than 10% after taxes. Now, this may still appeal to you, but can I ask you why? All you need is a slight change in public opinion or negative media exposure and your stock price could plummet. Add in the political climate of today and your could end up losing your investment all together. (It happened to me - I had a stock worth $12 that went to $16, and almost overnight dropped to 16 cents!) The problem is most investments are just like this in one way or another. There is just one engine working for you here. Capital appreciation. And, unfortunately, some of that prot will have to be paid in taxes. Or worse ..... That is the way it is. Now, lets look at this stock like you would say a small strip center in the middle of town. We will call our commercial property XYZ Company. OK. Now, lets say I put the same amount of money in the XYZ Company - $100 but this time I am also going to get a loan from my bank for another $100 too. So, lets say I put $100 of my money into the commercial property AND borrow another $100 from my bank. Now, I have $200 to work with but remember, $100 is my money and the other $100 is the banks money. So, I have now purchased 200 shares of XYZ Company ($200 X $1.00 per share) but I still have only $100 of my own money in it and the other hundred was borrowed. I now control Page 3 Copyright Paul Forsberg 2013 Reprint permission contact Paul@FLCRES.com www.FloridaCommercialRealEstateServices.com 2485 Jen Dr. #1 Melbourne, FL 32940 (321) 300-6123 double the shares, 200, with the same amount of money out of my pocket, $100. Remember the other $100 is the banks money, not mine. So now I own twice the stock for the same investment out of pocket. Now, lets say while I own this stock it appreciates at the same rate as before, 10% per annum for ve years. In ve years XYZ Company is worth $150.00 per share. But over the ve years lets say that XYZ Company ALSO decided out of the kindness of the company to also pay back the $100 I borrowed too. So, not only is my stock appreciating, the company (not me!) is also paying off my additional $100 of debt I used to buy more stock. So, my borrowed money was not paid back by me but by XYZ Company. On top of that, when I le my tax return Uncle Sam is going to give me some nice large tax breaks for owning XYZ Company. These tax breaks will reduce the income generated by XYZ Company. Even though I am proting every year from XYZ Company, I can use legal tax saving strategies to in some years show a loss from XYZ Company. I can do this even though it made money year after year. Lastly, when it comes time to sell, Uncle Sam decides to give me break. He tells me that when I sell XYZ Company stock I do not have to pay any capital gains taxes as long as I buy stock in another company. I can sell, keep my prot and legally defer any capital gains taxes. Also, remember, I own double the shares and the Company paid back the money I borrowed to purchase those shares. Now, which investment would you take if you had to choose?? ABC Corporation or XYZ Company? I hope its obvious. That is how commercial investment real estate properties work in my world. I hope my stock analogy brings this home for you. I just want you to get the concept of how this can exponentially grow your wealth vs. the traditional way. And... Like I mentioned before ...... the single thing al the super wealthy people I met in in the Hampton's shared the same investment philosophies and in some cases, share in ownership of others. Page 4 Copyright Paul Forsberg 2013 Reprint permission contact Paul@FLCRES.com www.FloridaCommercialRealEstateServices.com 2485 Jen Dr. #1 Melbourne, FL 32940 (321) 300-6123 Factor these costs in to your operating statements to give you a TRUE idea of how the property will cash ow. The lenders and appraisers will do this why shouldnt you? OKSo now you have a better idea of how you can literally save a ton of money when you Buy an Apartment Building or Property. It can be tough out there, especially when buying and I dont want to see you get taken for a ride. This report is a great start on your road to true wealth and independence. All the Best- Paul Forsberg Commercial Real Estate Specialist Page 5 Copyright Paul Forsberg 2013 Reprint permission contact Paul@FLCRES.com www.FloridaCommercialRealEstateServices.com 2485 Jen Dr. #1 Melbourne, FL 32940 (321) 300-6123