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[D622]Dove Commercial Real Beauty

by Tony Seruga, Yolanda Seruga And Yolanda Bishop Of Maverick Real Estate Inve, Ton

Every day I am approached by people in residential real estate, by people in different professions such as medicine and law, and others who are not too informed on commercial real estate and what it is really about. When they discover my profession, they always ask me, ?Why?? Of course they acknowledge the most obvious reason, the amount of money that can be made. However, I am quick to inform them that there are so many other wonderful reasons why ANYONE should be involved in commercial real estate.

Here I have compiled the top five reasons why I am involved in commercial real estate, and why you should too.

The first is really my favorite, the concept of synergy. Synergy is the idea that you put in the same amount of effort, but yield a larger result. 1 + 1 = 3. This is definitely present in commercial real estate. Many of the deals you might be involved in require the same exact process and amount of work, regardless of how large the property is, how much the property is worth, what its best use is, and how much of a return you can make from it.

A $15,000,000 deal can literally require the same amount of work as a $3,000,000 deal! Because of this reason, I always urge my colleagues to think big, and always go for the gusto! Why exert the same amount of time and energy on a low yielding deal, when you can put the same amount of time and energy, and yield 10 times what that single deal would? I am not a rocket scientist; however, this seems pretty clear to me.

The second reason is leverage, and how it can maximize your return on properties. In commercial real estate, you always want to examine how you can decrease your invested capital while returning the most money. A good way is to borrow part of the initial investment and pay a certain percentage on the borrowed money. The total cost of initial investment can be much lower when you use other people's money (OPM), and it, therefore, increases your overall return. There are not too many businesses that function is this fashion, and you can definitely use it to your advantage.

The third reason why I chose commercial real estate is the impact I can have on communities. Creating more affordable housing, renovating old, large apartment complexes so that people actually want to live there, finding places for companies to establish a customer base and employ jobs, and increasing the economic welfare of cities are all fantastic reasons to get involved in commercial real estate! You can really have an effect on the communities you work in, and everyone will benefit.

The fourth reason is abundance. There is an abundance of properties, types of properties, ways to create wealth, professionals to work with, other people's money to borrow, and money to be made. There is enough for everyone in this constantly changing industry. It makes it an exciting place to work, as there is always a new and different opportunity for you to pursue!

The fifth reason includes all the various skills you get to use in commercial real estate. It is not like an accountant's job where you primarily deal with the same math and the same clients day in and day out, with little varying tasks. In commercial real estate you must problem solve, be creative in constructing offers and what to do with properties. It requires negotiation, which is fun, building relationships with other professionals that can lead to friendships and lifelong business partners, and, of course, the ability to create massive wealth and happiness that many others never experience!

There are many more reasons why I enjoy commercial real estate, but I don't want to spoil it for you. You will develop your own reasons to love the business of commercial real estate.

Commercial real estate can be rewarding personally and financially, and it is a benefit to the community. Think about all the reasons why you want to do commercial real estate and visualize how you can reap all these exciting benefits too! You can make it happen!

The game of commercial real estate can be won in many ways. It's more of an essay test than true or false. There's definitely more than one correct answer. A large percentage of the world's millionaires earned their wealth through real estate investment. While nothing is a sure thing, real estate offers many opportunities for the savvy investor. Whether you want to build wealth or simply maintain it, there are several strategies that you can implement to get where you want to be. Where should you begin? You don't want to put your hard earned money into a dead market. You want to protect what you've worked so hard for. Let's look at a few of the more popular methods for investing in commercial real estate.

One of the more classic approaches to commercial real estate investment is the buy and hold strategy. In this maneuver, you buy property that is valued at a fair price. It may be a few miles away from town or outside of a development area. You then simply hold the land for a number of years. While you do this, the city comes to you. Developments are going up all around you. Yours is the last piece of raw land around and every developer in the state wants a piece of it. You, the genius entrepreneur, then sell the land for millions more than you pay for it. It couldn't get much better than this. While this is obviously the ideal scenario, it can work like this. As you know, land is the only commodity that they don't produce any more of. Therefore the price of your land will eventually go up.

While there is a great deal of money to be made in this sort of venture, it can take a long time to mature. This is great for someone who has a big chunk of money that they want to sit on for a few years. There is no set time limit as to how long it will take you to win. You basically have to go with your gut on this one. Should you sell it five years from now for twice what you paid for it? What if in year six, Wal-Mart wants to move in and pay you 10 times what you paid? There is really no way to know. You have to get out when you feel the time is right. Look for the signs around you. If the trends of development in your area are coming towards you, wait for a while. If you've had the land for ten years and the city that you just knew would be the next boomtown turned into a ghost town, you might want to get out. This strategy can produce a great return and it's a pretty passive source. You don't really have to do anything except buy the land and wait.

Another great way to invest in commercial property is through the rehab market. This is where you buy a run-down property that needs a lot of work done. You fix it up with a little elbow grease. Then after it's up to par, you put it back on the market and make a tidy profit. This is a growing segment in the real estate industry. There is a definite need for this as property is always getting old. The most important thing to remember in this type of venture is you make your money when you buy the property, not when you sell it.

You must find properties that are undervalued. If you overpay, no matter what you do to the property, you'll still come out behind. You need to find properties that need a lot of work. This has the highest potential for a great return. Don't get involved with a property that just needs a new coat of paint and the yard mowed. This will not make you any money. In fact, you'll most likely lose money. Stick with the properties that need the most TLC and you'll come out on top.

Another popular strategy is that of quick turning a property. This involves finding distressed properties. You search for a great deal that is extremely undervalued. This could be a property that is facing foreclosure or a bankruptcy. Someone may take a significant cut in the price in order to get out fast. This can benefit you, the investor, greatly. You then take the distressed property and put it back on the market quickly. Since you don't have to sell quickly, the property will get fair market value and you can make thousands of dollars in profit. As with rehabbing property, the key is finding cheap properties that you know are worth more. This is where all of the money comes from in this type of transaction. If you know the market, you can do very well with this type of deal.

For investors that already have a good sum of money saved up, there is another form of investment that is very appealing. Professionals who want another steady income can invest in expensive real estate that is already a great performing asset. This could be a luxury apartment complex or condos or any number of properties. The investor then takes over the cash flow that is generated by the subject property. They will most likely leave the existing property management in place and just take the steady cash flow. This is a great form of investment for those that are looking for a passive source of income from their investment. People who would benefit from this are usually very busy and already successful in some other walk of life. They understand that the only way to create wealth is through multiple sources of income. Diversification is the key.

Whichever method of commercial real estate investment you decide on, make sure it's the right one for you. Consider all the factors carefully before making your decision. Just remember that you too can succeed in real estate investment.

Article Source : Bc Canada Real Estate

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Both Tony Seruga, Yolanda Seruga And Yolanda Bishop Of Maverick Real Estate Inve & Tony Seruga, Yolanda Seruga And Yolanda Bishop are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Tony Seruga, Yolanda Seruga And Yolanda Bishop Of Maverick Real Estate Inve has sinced written about articles on various topics from Real Estate, Legal Matters and Real Estate. Tony Seruga, Yolanda Seruga and Yolanda Bishop of specialize in commercial and investment real estate. As of May, 2006, they and their partner. Tony Seruga, Yolanda Seruga And Yolanda Bishop Of Maverick Real Estate Inve's top article generates over 27100 views. to your Favourites.

Tony Seruga, Yolanda Seruga And Yolanda Bishop has sinced written about articles on various topics from BMW, Real Estate and Real Estate. Tony Seruga, Yolanda Seruga and Yolanda Bishop of specialize in commercial and investment real estate. As of May, 2006, they and their partner. Tony Seruga, Yolanda Seruga And Yolanda Bishop's top article generates over 1000000 views. to your Favourites.