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Have you ever been told that before? That is a very powerful statement...and
once you understand the difference between Income and Wealth it will mean
the difference between you "working for money", or having "your money working
for you". Income, no matter how much you make, will last only until you have
spent it all...then you have to go out and make more. Understand what you
just read:
"You have to go out and make more...
you must then replace the income you just gave away".
Wealth, true wealth should last a lifetime. True wealth should last for many
lifetimes, those of you children, and your children's children.
"True wealth stands the test of time".
How do we achieve this Wealth? Remember I said above, when referring to
income, that "You ...must replace the income you just gave away"? That's right.
Wealth, true wealth, generates the income for you.
Wealth is your money working for you.
The investments you make do the work for you...and as you've probably heard
many times, Real Estate is the number 1 means to build true wealth.
This site is put together as a means, not to give you all the answers, but to point
you in the right directions and let you take it from there.
Commercial Real Estate investing, done the right way, can prove to be much
less risky than its Residential counterpart. The biggest hurdle is fear.
Fear of the extra "0's" in the price and mostly in the new debt.
Fear of debt (this comes from not understanding the difference between good
and bad debt). Mostly it is fear of success.
Most people are not taught in school about money. They are taught about
balancing a check book (something many people still can't do with a calculator), but not about how to become wealthy. Most are taught how to go to school, get a job with a pension, and then retire at age 65...usually broke. This is because most people are limited in their spending power to their "paycheck". The wealthy, are limited only to their imagination and creativity...because they understand how money works...they don't work for their money.
There are many Myths when it comes to Real Estate investing...especially Commercial. Here are just a few...with the included Truths:
1 -
Commercial Real Estate is too expensive
. Fact: Commercial Real Estate usually costs more...that doesn't make it more expensive...there is a big difference. If you structure the deal properly, you should be able to buy a commercial property for less than a residential one. Yes, you read that right. Your tenant pays your mortgage, and everything else and you need a good source for
financing.
2 - New Real Estate investors should start with Houses because it's easier and safer. Fact: In fact, it is just the opposite. Houses involve people but commercial involves a business...one that depends on appearances, so they will keep up everything. A commercial tenant wants to stay there forever if you let them, and if they are paying all your bills plus a profit...why would you argue with them? A residential tenant wants to lease "day by day"...if you'd let them.
3 - Commercial Real Estate is far too complex. Fact: Nothing can be further from the truth. It is usually less complex than buying your own home...you just have to learn a new language. Learn what NOI and CAP rates are, and the importance of the appraisal , and NNN absolute guaranteed leases.
4 - Commercial Real Estate takes up too much of my time : Fact: Only if you want it to. Real Estate investing is a Team concept. Knowledge helps you put that team together. Commercial Teams are usually a better, more professional group.