A couple of months ago the Stock Market did a major overnight Swoon....



Former FED Chairman Greenspan uttered the "R" word - Recession

* China stocks blew up while you were in bed

* Dow Jones lost 416 points as if falling right off a cliff

* AND every other stock index worldwide tripped and fell just as hard

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 know what you will pay for the property. You know how you will upgrade the buildings and the tenants ... so you can calculate your profits before you actually purchase 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.

*Cash Flow - Your Favorite Sleeping Pill*

You get a check every month, no matter what happened in Alan Greenspan's latest press conference.

The cash flow depends on things you can know about and are pretty darn fixed - rent, mortgage and fixed expenses. And many of them you can improve to drive appreciation of the underlying property IN ADDITION TO your income.

*More Leverage Than You Can Shake a Stick At*

You can purchase a $100,000 building for $20,000 down and - get this - it doesn't even need to be your cash.

Imagine telling your broker you would like to purchase $10,000 in stocks using $2000 in money you raised from your lawyer friend next door. They simply would not know how to respond.

Yet you can raise $200K from friends and purchase a $1M piece of Commercial Real Estate in any city - any where in the country.

*Tax Bennies*

You won't find another investment where your appreciation and income are sheltered by an automatic tax deduction. AND it all happens while the property itself goes up and up in value. Depreciation is your friend.

Look at Mutual Funds for a contrast. There you can owe taxes even though the fund lost money in that year. Now that's safety for you.

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 the former Head of the FED and the market's drop.

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

And when the stock market is going through its wild gyrations you can sleep easy and be glad you invested in real estate.