investments

Top 3 Ways to Purchase Commercial Property With None of You Own Money!

By Yolanda Bishop

Commercial real estate investment is an industry of abundance. There is literally an unlimited amount of money available to people who want to borrow it. So much, in fact, that you can literally purchase millions of dollars worth of commercial property without using one dollar of your own money!

Unless you already have millions of dollars at your personal disposal to invest, or are fortunate enough to have come from a family of wealth, borrowing money is the only way to become a commercial real estate investor. It is a great way to purchase commercial property, even if you have your own millions already, because you don’t have to worry about losing your personal money. In fact, that is how many multi-millionaire commercial real estate investors make their money- by not using their own! If you don’t use it, then you never lose it.

One of the reasons you can borrow money to purchase property is because of something called leverage. You simply borrow money against the property, as it is the property that actually holds the value. This will play a major role in our discussion of purchasing property without using any of your own money.

The first way to purchase property with none of your own money is subordination. Many people consider this way of purchasing property as creative financing. In this situation, the current owner actually takes out a second mortgage on the property to cover the difference of what the purchaser (you, the investor) can get loaned from a bank or private lender. If you are lucky enough to have an owner who will sell the property with no money down, and he or she subordinates a second mortgage for the difference you owe, then you just purchased a property with none of your own money!

When using this tool, it is a good idea to have the owner only subordinate for a short amount of time, like one to two years, just until you can take the money generated from the commercial property and pay off the second mortgage, leaving the owner free of the property. At this point, payment for the property can take place because you will have generated cash through the commercial property. The owner will actually wait to get paid his money for the property! It happens all the time, and everyone comes out happy in the end. You purchase your money generating property with none of your own money, and the owner gets paid for the property. This situation may seem backwards at first, but it works rather well, if you find an owner who is very motivated to sell, and he or she understands this way of investing.

You must always be sure that the property can support the debt, as you do not want the owner getting into financial trouble with the second mortgage. Some owners are weary of this type of investing, as some purchasers do not do as they say, and problems occur. You want to be an investor of integrity and have a reputation of making things happen in the way in which you and the seller agreed.

Another way to purchase property with none of your own money is through the owner releasing some acreage that is free and clear which you, in turn, use to borrow enough money to cover a down payment on the entire piece. This strategy works especially well with raw land. You are basically using a piece of the property to purchase the entire property. Owners may not even be aware of this option, so be sure to mention it or address it in a letter of intent, especially when dealing with many acres of land!

A third way to purchase commercial property without using your own money is using partners. There are experienced investors, builders and developers who will find the financing for you, and basically get the deal ready to go, if you are willing to do the work. The agreements can greatly differ, but the partner(s) will basically finance the deal and take a piece of the return that you create through, either turning a distressed property around, or overseeing the development or building of a specific type of property and making it profitable. Partners can offer great experience and insight so that you can learn more about a specific type of property or the actual industry itself.

When it comes to commercial real estate, there are so many options; don’t ever limit yourself! Be creative and find resources. There is a wealth of information and money available to anyone who is willing to take some time and make some contacts. This industry is not one of limitations, but one of abundance.

Tony Seruga, Yolanda Seruga and Yolanda Bishop of [http://www.maverickrei.com] specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.

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investments

The Benefits of Commercial Real Estate Revealed

The Benefits of Commercial Real Estate RevealeBy Yolanda Bishop

Getting involved with commercial real estate could be the best decision you have ever made. Whether you are currently working within the real estate industry, or are new to the business, commercial real estate is one of the best kept secrets of those already succeeding in the business. The rewards reaped within this industry compare to no other, as you will soon learn.

If you feel commercial real estate is something you are not able to accomplish, I would have to say you are greatly mistaken. With a little knowledge and a great amount of motivation, anyone can succeed in this business. The benefits far outweigh the costs, as you can create a life of which many dream, but never actually experience.

The first great benefit is one that allows you to create a schedule that best fits your personal situation. In commercial real estate you can work full or part-time and still create wealth and equity you never knew was possible!

Commercial real estate can easily be a part-time job that brings in incremental cash flow. You can even start out part-time, and hold a job until you have enough cash flow and money so that, eventually, all you do is commercial real estate.

Commercial real estate as a full-time job allows you to have many benefits such as being your own boss and having the ability to work from home. You can create your very own commercial real estate business and quickly build a strong net worth as well as positive cash flow.

Another great benefit is it does not take years of training, or years of moving up the corporate ladder to be successful. You can start right now, today! You can begin your commercial real estate endeavors whenever you so desire because there are very few barriers of entry to this industry.

Probably the most enticing benefit of commercial real estate is profit. Huge profits, in fact, which can be made with a limited amount of effort. You can make the same amount of money quick turning or selling 100 single family residences as you would make with a single commercial real estate deal. The profits can be astonishing!

It takes the same amount of work for every commercial real estate deal, meaning you must go through the same processes each time. Why not maximize your result and go for the larger returning deals, rather than the smaller ones? Synergy is a key word in commercial real estate, as small changes can yield huge results.

In commercial real estate, your financial investment is very low, perhaps even non-existent. You can purchase property with 100% of other people’s money (OPM), and create large profits for yourself. This is the only industry where there are literally hundreds of millions of dollars just waiting to be borrowed! Find the money and get to investing!

As you can see, commercial real estate meets and exceeds the expectations many people wish they could have in their own career and personal lives. You can make commercial real estate whatever it is you want it to be… a supplemental income or primary career. Take some time and imagine that all these great benefits were yours. How would life be?

If you think commercial real estate is more than you can ever dream of, begin your research and start learning all about it. Find people working in the business, and get acquainted with the investment strategies and methods that can return huge profits in a very short amount of time. Once you truly understand and experience firsthand what commercial real estate has to offer, I know you will look no further for other money-making, equity building, life creating businesses.

Tony Seruga, Yolanda Seruga and Yolanda Bishop of [http://www.maverickrei.com] specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.

Article Source: http://EzineArticles.com/?expert=Yolanda_Bishop
http://EzineArticles.com/?The-Benefits-of-Commercial-Real-Estate-Revealed&id=240585

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