Ever Wanted to Make So Much Money Off of One Single Real Estate Deal That You Could Retire?

People Are Doing it Right Now With Commercial Real Estate Investments and We’ll Show You 7 Good Reasons Why

Conventional wisdom says that the best time for windfall property investing of any kind is to buy when the market is just starting to go up…and using historical property trends as our guide, the people who made the most money with real estate, especially commercial real estate, in the past were the ones who invested when the market was down.The market is definitely down and when it comes to commercial property investments there are no exception. Prices are at their lowest levels in decades.

Here Are 7 Solid Reasons Why it is a Good Time to Invest in Commercial Property.

Less Competition: There are less people in the market so you almost "stand out" as someone who could be a real buyer. Realtors are ready and willing to take the time with you. You are not just one investor in a crowd of many investors in the commercial real estate world, you are one of few. In this day and age, Realtors need to make that commission more than ever and with fewer buyers they have a lot less commissions, money in their pocket and the opportunity to even earn a commission in the first place is dwindling rapidly. Commercial real estate brokers are ready to work with much more so now than ever before.

What’s the bottom line on competition for the commercial property market right now? Simple Economics: "The fewer investors in the mix, the more properties to spread around

More Choices: When the market is down the people who were trying to invest on a shoestring and with little or no training or experience have gone out of business. This leaves many very prime investment properties available, and in this market, at very steep discounts.

Also, there are fewer investors in the market willing to buy. Just think of all the different types of people who are involved in a commercial real estate transaction; attorneys, surveyors, banks and loan officers, mortgage brokers, private money lenders, title companies, property inspectors and more. All of these people need more work and are more willing to take the time to help you get the best service and or product. And let us face it, with bigger commercial deals, you need advice and what is better than free advice from the pros.

Finally, you can not ignore the value in being able to cherry pick the best deals. In the past full time commercial real estate investors often had to work all kinds of magic just to make a deal work. Currently with so much inventory, you can pick the low hanging fruit and leave the rest.

Prices are Down: When the market goes down most people run like scared rabbits. The people who run are usually those who had little experience, knowledge or guts to do what it takes to make their business successful. When this happens the prices fall like a rock. When you are a prepared investor you can take advantage of these conditions.

This does not mean that you can just buy anything because the price is down. You have to properly analyze national and regional market conditions as well as a thorough analysis of everything about the specific commercial investment property. Obviously in this market, price is not the only consideration when you make an investment.

Speaking of choices, low prices and cherry picking, when it comes to commercial property investing, there are many sub niches. Most savvy investors who make money do not to become experts at everything. They willl start with one niche then expand. A niche like Mini Where-houses, or Retail-Strip Centers, or Car-washes, Office Buildings, Medical offices,etc. You get the picture. As with any kind of business or investment it’s important to properly pick your niche. We have got a great series of free training videos that cover various niches if you’re wondering where to start.

Even though it does not make sense, costs to improve the property may go down with the downturn in the economy. Vendors who have materials and who provide services also need work. They are willing to reduce prices of material and services to get more business. In those times the prices are not only lower but you may be able to negotiate even substantial discounts.

There are Pitfalls

Improvement Cost Has Decreased:

What does this mean for you, the future owner of a piece of a commercial property?

Whether it is a commercial foreclosure, commercial short sale or just a good deal you got on some type of property investment? It means that you or your future tenants will be able to get the space modified for your particular need for a lot less money…translating into less money invested and more money added to the bottom line. The fix up or change of use is a lot of time a limiting factor in getting a good deal. The current climate has made this a lot more favorable for us as commercial property investors.

Cheap Labor: Let us face it, right now people are out of work. Hundreds of highly skilled craftsmen right in your local area are dying for steady work and these days, they are not being quite so picky when it comes to how much they’re making. Many types of construction workers, carpenters, plumbers, roofers, landscapers, site improvement companies, and others are all begging for more work. You usually do not expect the price of labor to come down for slight shifts in the economy, but when people really need work they will take less per hour or per job. In some places labor cost has gone down by as much as 30%.

All of a sudden, that self storage facility you just purchased that needed a $10,000 in handyman work? Now only needs $7,000. That $3,000 bucks in this market can go a long way towards more profit in your pocket, more inventory on hand or even more projects to spiff the place up.

Sellers More Willing to Take Creative Financing: In a rising economy sellers can demand and get not only their selling price but get all cash or their terms. When the economy turns upside down, so do the sellers. They are much more willing to consider other creative financing. Which is good for us as real estate investors because it usually means less money down, no bank financing or some sort of owner financing.

It’s not uncommon to have sellers take as much as 98% seller carry back financing (owner financing). When the seller is behind on his payments to the bank, banks will often seriously consider a short sale or other creative option to get rid of the property. This can only mean cheaper prices and less cost to invest for you the future owner of commercial investment property.

Furthermore, In tough times like now, many business need to down size, and may need a smaller space. All of which mean a more motivated seller, creative financing, and often less money out of pocket.

There are many options that you as a buyer has when buying in a down economy that are not available to you in an up market. The best of which is often you can walk into a property ownership position with little or no money out of your pocket and no bank financing involved, yet still realize the tremendous upside that is possible with commercial property investments.

State and County Governments are Easier to Work With: State and County government budgets are shrinking by the day. They are looking for any legal way possible to increase their revenues.

When the market is up the competition is so fierce that they only take what they consider is the best of everything. In a down economy they are willing to sit down and work out some solution that will work for both of you. In my area several companies have worked for over 10 years to get the local government agencies to let them build an adult living center but with no luck. Things changed when the economy went down and the government agencies have less money to work with. Recently a company was given the OK to proceed with the project.

When it comes to commercial investing, the biggest profits are often realized when you can change the use of a property to something more profitable, or get more favorable zoning permissions from your local governments. And right now, with tax revenue down, local governments are willing to ‘deal’ like never before. (this is huge and in fact we cover this in one of our free training videos on the web site below.

What Does All of This Mean for You the Commercial Real Estate Investor:

Whether you’re a seasoned pro or a newbie looking for "investing 101" type information, you need to align yourself with other experts in the field. Both local experts to assist you in evaluating your prospective investment to knowledge pros who will provide guidance in other mates of getting the deal done successfully and at a profit. With the profits and positive steady cash flow in commercial real estate you’ll easily be able to afford and justify the cost of hiring an expert to advise you .

When it comes to making money in this market from commercial real estate investments, commercial foreclosures, commercial short sales or distressed property owners, buying commercial investment property at steep discounts then either leasing them out for positive cash flow or flipping them to other enterprising real estate investors or owners can prove to be very very lucrative for both the seasoned pro and the commercial real estate novice.

Property investing in a down market does take a little more Guts than in an up market. But Warren Buffett and thousands of other investors did not build the foundations of their wealth in an up market, they did it in a down market. In fact, Warren Buffet famously said; "When there’s blood in the streets…Start buying."

But guts need to be backed up with through knowledge, analysis, preparation and multiple exit strategies. Do not underestimate the value of those things in any real estate market, and especially in a down market. The profits are there for the taking if you do the right things, follow proven formulas, historical trends and team up with known pros in the business.

To Make Money as a Commercial Real Estate Investor You Need to Start With 3 Things:

The Correct Property Investment choice

Current, relevant and proven knowledge in the real estate business

A clear plan on how you’re going to sell or make money from your commercial property investment

All of these are important and to help you size up the commercial real estate market and pick a sub niche that will work best for you in your area, we have a series of training videos you can access free of charge right now. Click Here to see a list of free training videos on commercial real estate niches.