Residual Income: Getting Started In Commercial Real Estate Investing
With many Americans now realizing they can't depend on the government to take care of them in old age, investors are now turning to face the hard reality that it's time to take care of their own financial futures.
Of course, there are always those who want to build wealth and amass a fortune, just so they can say they've done it. However, many more of today's beginning real estate investors are looking for something more tangible - they want to know they and their families will be taken care of - and able to live at the standard to which they have become accustomed, even after they have stopped working for a paycheck.
Stock market investing has historically been an excellent place to invest money. With its annual average of 11% returns since the crash in 1929, the long term compounding effect on your money can be huge! This is the type of return you need to see in order to really build wealth. Unfortunately, that's not a safe annual return like your savings account, it's a return that fluctuates - sometimes posting losses for years at a time. Some investors are just not comfortable with this type of volatility and turn away from stocks because they can't stomach the roller coaster ride.
That's why investing in real estate makes so much sense. IF you want to work with an asset you can control, rather than just watch, you may want to look into commercial real estate investing.
Many speculators dip their toes in the water with a few rental homes or a small apartment building. That's a great spot to begin building wealth and learning the commercial real estate industry. However, for financiers on the lookout for serious retirement income that may be relied upon to grow in a hands-off portfolio, commercial real estate certainly has its place.
Commercial property for beginners isn't that should be entered into gently. It's hard to read a book or talk to a broker and really understand everything that is concerned in making and financing a good property deal, and then managing your property once you have it in place.
I think the 2 best ways for newbies to get involved in commercial property are to a) Work their way up through the ranks of owning smaller properties or b ) Work with a mentor of some type - ideally another property owner in your marketplace - to find out what they do, how they do it, and why they do it.
Beware the real estate "trainer" who will charge you a fee for his course that tells you everything you need to know about commercial real estate investing for beginners. That might work okay for single family rentals (although it's still an uphill battle to learn everything you need from a course or "system"), but it's a silly move when you take on an investment plan that includes assets as complicated as commercial real estate. There are so many different things to look at and evaluate in commercial deals - and so many things that could go wrong, it's an area you want to trod with experience on your side. Either your own direct experience in investing, or that of a mentor or coach who will work with you on an ongoing basis to help you along the way.
If you need additional strategy coaching from someone who is familiar with commercial real estate, but not "vested" in seeing you emerge with a certain outcome, consider hiring a professional real estate consultant. My business partners at The Real Wealth Company are financially independent and living off of their real estate income. If you would like to talk to them to see how they do their business, or get advice on how you can improve your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial real estate property.
Please let us know how we can help you. Visit www.TheRealWealthCompany.com for more information. - 23305
Of course, there are always those who want to build wealth and amass a fortune, just so they can say they've done it. However, many more of today's beginning real estate investors are looking for something more tangible - they want to know they and their families will be taken care of - and able to live at the standard to which they have become accustomed, even after they have stopped working for a paycheck.
Stock market investing has historically been an excellent place to invest money. With its annual average of 11% returns since the crash in 1929, the long term compounding effect on your money can be huge! This is the type of return you need to see in order to really build wealth. Unfortunately, that's not a safe annual return like your savings account, it's a return that fluctuates - sometimes posting losses for years at a time. Some investors are just not comfortable with this type of volatility and turn away from stocks because they can't stomach the roller coaster ride.
That's why investing in real estate makes so much sense. IF you want to work with an asset you can control, rather than just watch, you may want to look into commercial real estate investing.
Many speculators dip their toes in the water with a few rental homes or a small apartment building. That's a great spot to begin building wealth and learning the commercial real estate industry. However, for financiers on the lookout for serious retirement income that may be relied upon to grow in a hands-off portfolio, commercial real estate certainly has its place.
Commercial property for beginners isn't that should be entered into gently. It's hard to read a book or talk to a broker and really understand everything that is concerned in making and financing a good property deal, and then managing your property once you have it in place.
I think the 2 best ways for newbies to get involved in commercial property are to a) Work their way up through the ranks of owning smaller properties or b ) Work with a mentor of some type - ideally another property owner in your marketplace - to find out what they do, how they do it, and why they do it.
Beware the real estate "trainer" who will charge you a fee for his course that tells you everything you need to know about commercial real estate investing for beginners. That might work okay for single family rentals (although it's still an uphill battle to learn everything you need from a course or "system"), but it's a silly move when you take on an investment plan that includes assets as complicated as commercial real estate. There are so many different things to look at and evaluate in commercial deals - and so many things that could go wrong, it's an area you want to trod with experience on your side. Either your own direct experience in investing, or that of a mentor or coach who will work with you on an ongoing basis to help you along the way.
If you need additional strategy coaching from someone who is familiar with commercial real estate, but not "vested" in seeing you emerge with a certain outcome, consider hiring a professional real estate consultant. My business partners at The Real Wealth Company are financially independent and living off of their real estate income. If you would like to talk to them to see how they do their business, or get advice on how you can improve your operations, they are available on a simple pay-as-you-go system and really get a kick out of advising our clients and seeing them buy their first commercial real estate property.
Please let us know how we can help you. Visit www.TheRealWealthCompany.com for more information. - 23305
About the Author:
To learn more about commercial real estate investing for beginners, visit their website and register to receive the video tutorial on How To Invest In Commercial Real Estate.
posted by Mr. Forex at
4:38 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home