Fact: The vast majority of wealth created by Forbes Richest 400 has been accumulated through Real Estate.

Fact: There are more rags-to-riches stories written about real estate than anything else – just turn on your computer.

Fact: Opportunities for commercial real estate investing are available to everyone!

So, as Donald Trump is fond of saying, “THINK BIGGER” not “YOU’RE FIRED!”

The 5 Compelling Reasons to Invest in Commercial Real Estate are:

Leverage:
Where else besides real estate can you invest approximately 20% of the necessary equity and wind up with an asset worth many multiples of your original cash investment?

Leverage is used to accomplish two things: 1) purchase a property with less than 100% of the cost and 2) increase the return on equity.

Additionally, let’s not forget real estate appreciation historically has outpaced all other investment venues.

Better Return on Your Investment:
This is a no-brainer! Real estate not only outperforms savings account interest but common stocks as well. And let’s not forget with better appreciation (historically) and leverage it makes real estate investing a win-win investment solution for your portfolio.

Tax Savings:
You will see savings on the amount of income tax you pay. You will get additional deductions such as depreciation and interest. Please refer to your accountant or attorney to give specific details prior to making the commitment to purchase a commercial real estate property.

And, when you sell your property you can trade into a 1031 exchange (tax free property exchange) thus paying no capital gains tax.

Appreciation:
Again, historically real estate has outpaced other investments in terms of growth. Your net worth grows at a more rapid pace when you own real estate.

Your Tenants Pay the Mortgage:
Your tenants pay off the mortgage and expenses* via their rental payments. No other investment uses this vehicle for unrivaled growth. This is leverage at it’s best!

*With commercial real estate typically the tenants have net leases shifting the expense liability to the tenant. Finally, there is no better time than now to invest in commercial real estate. So, get going, what are you waiting for?

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Filed under: August 2010

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