Sleep Easy with Commercial Real Estate Investing

By Dike Drummond

How Alan Greenspan can jack up your Investing Risks

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 index around the world followed over the edge like so many lemmings

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.

The same pundits who wring their hands at such market swings tell their investors that direct Commercial Real Estate Investing is “High Risk”. That’s another “R” word getting plenty of play lately – Risk. Tell that to people who rode Enron and so many other stocks down to zero.

I just smile and remember the benefits of being a “Greenspan-Proof” Real Estate Investor …

*You Can Calculate Profits Before 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.

You can research property values, expected rents and all the other variables involved and get a very good idea of the price you can sell at given the increase in cash flow you can force.

*Monthly Cash Flow helps You Sleep Like a Baby*

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*

You can buy $100 in property for $20 down and it doesn’t even have to be your money.

Imagine asking your broker to sell you $1000 in stocks for $200 in cash … they would just shake their heads and laugh.

Yet you can bring $200K of your investor’s cash to a deal and buy a $1M piece of investment property any day of the week.

*Save Taxes with Depreciation*

There is no other investment where you can get a deduction on your taxes – for year upon year – while your property continues to go up in value. Depreciation is the Real Estate Investor’s secret weapon.

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 sifting through deal after deal, looking for the property that is going to make you good money year after year, just remember all the benefits of direct ownership of real estate.

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

Remember you depreciation, your leverage and your cash flow and put on a grin like the Cheshire Cat.

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.

Thinking about investing money in the major markets any time soon? – Wait a minute!. Discover how Commercial Property Investment can increase your Cash Flow and Safety.

Article kindly provided by UberArticles.com

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