Sleep Easy with Commercial Real Estate Investing

Risk is the Enemy - Greenspan is the Devil

Last month the stock market scared a lot of people. In the span of just 24 hours...

Alan Greenspan said the "R" Word .... Recession

* Asian markets held an overnight meltdown

* 416 points fell right off the Dow Jones

* AND every other stock index worldwide tripped and fell just as hard

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 sit back, relax and remember why you don't have to worry when you are a Commercial Real Estate Investor

*You Know Your Profit When You Buy*

When you buy at the right price and execute on your business plan, you know what profit you will make when you buy.

You can pencil out your plan to improve the property, raise the rents, lower expenses and get a pretty good bead on the value of the property given the resulting increase in cash flow.

*Cash Flow - Your Favorite Sleeping Pill*

Your cash flow doesn't depend in the least on what anyone says about "Recession" or "Deflation" or "Inflation" or anything else that ANYONE might say about the markets in general.

That flow of cash comes from processes you can understand and predict. Rent minus expenses. AND you can raise the rents and lower the expenses to force appreciation of your property - that's on top of the income... cool.

*Leverage Baby Leverage*

For every $1000 you need to buy a property, you only need $200 in cash and it doesn't even have to be yours.

Imagine telling your broker you would like to purchase $10,000 in stocks using $2000 in money you raised from your lawyer friend next door. They simply would not know how to respond.

Yet you can raise $200K from friends and purchase a $1M piece of Commercial Real Estate in any city - any where in the country.

*Save Taxes with Depreciation*

Name me any other investment that can get you a tax write off year after year - for decades mind you - while it goes UP in value. You have to love Depreciation.

Look at Mutual Funds for a contrast. There you can owe taxes even though the fund lost money in that year. Now that's safety for you.

So when you are doing your due diligence and making the contacts that will bring a good piece of property into your portfolio, remember the unique benefits of Commercial Real Estate Investing and know you are eliminating some major risks to your wealth.

Forget about Greenspan and how much the Dow Jones fell that day.

Take your leverage, your cash flow, your depreciation and the fact you can reach out and touch your asset .... all the way to the bank.

And when the stock market is going through its wild gyrations you can sleep easy and be glad you invested in real estate.

Article Source: http://www.real-estate-article-directory.com

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