Risk is the Enemy - Greenspan is the Devil
A couple of months ago the Stock Market did a major overnight Swoon....
Former FED Chairman Greenspan uttered the "R" word - Recession
* China stocks blew up while you were in bed
* 416 points fell right off the Dow Jones
* AND all the other major stock indexed tumbled in unison
At the end of the next day $583 Billion had gone up in smoke from Greenspan's mutterings. "R" word indeed....
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*
You can use Excel to create a proforma that will tell you almost exactly what profit to expect ... before you even buy the property.
It is a numbers game where you get to look at ALL the numbers you need to be successful. Purchase prices, rents, estimates for costs of improvements. You can even calculate what you can sell for just by knowing a little about the market and the cash flow your property is producing.
*Predictable Cash Flow Lets You Rest Easy*
You get a check every month, no matter what happened in Alan Greenspan's latest press conference.
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.
*More Leverage Than You Can Shake a Stick At*
For every $1000 you need to buy a property, you only need $200 in cash and it doesn't even have to be yours.
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 you can raise $200K from friends and purchase a $1M piece of Commercial Real Estate in any city - any where in the country.
*Save On Your Taxes*
You won't find another investment where your appreciation and income are sheltered by an automatic tax deduction. AND it all happens while the property itself goes up and up in value. Depreciation is your friend.
The mutual fund world is so perverse you can owe taxes even though the fund lost money that year. Yeah, there's a safe investment for ya.
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.
Ignore what the Stock Market Talking Heads are Saying
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.
Then lay yourself down to sleep at night, safe in the knowledge that your properties are protected from the overnight ravages of the brokers and pundits that roil the world's stock markets.
Article Source: http://www.articlegoldmine.com
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