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Lower your Risks with Commercial Real Estate Investing

By: Dike Drummond

Greenspan and the "R" Word

Last month the stock market scared a lot of people. In the span of just 24 hours...

Alan Greenspan said the "R" Word .... Recession

* The Chinese stock market tanked while we were sleeping

* 416 points fell right off the Dow Jones

* AND every other index around the world followed over the edge like so many lemmings

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.

It is a great reminder of why you have to invest a portion of your portfolio in Real Estate and NOT stocks. Let's count the ways.

*You Count Your Profits on the Buy*

You can use Excel to create a proforma that will tell you almost exactly what profit to expect ... before you even buy the property.

You can pencil out your plan to improve the property, raise the rents, lower expenses and get a pretty good bead on the value of the property given the resulting increase in cash flow.

*Cash Flow - Your Favorite Sleeping Pill*

Your cash flow doesn't depend in the least on what anyone says about "Recession" or "Deflation" or "Inflation" or anything else that ANYONE might say about the markets in general.

You can wrap your brain around and control all the factors that bring you that monthly check. Raise the rents and lower the expenses to force appreciation in the property in addition to the steady income stream.

*Leverage Baby Leverage*

For every $1000 you need to buy a property, you only need $200 in cash and it doesn't even have to be yours.

Imagine asking your broker to sell you $1000 in stocks for $200 in cash ... they would just shake their heads and laugh.

Yet you can bring $200K of your investor's cash to a deal and buy a $1M piece of investment property any day of the week.

*Save On Your Taxes*

Name me any other investment that can get you a tax write off year after year - for decades mind you - while it goes UP in value. You have to love Depreciation.

Compare that with Mutual Funds where you might even owe taxes in years where the fund lost money. That's a real safe investment all right.

So when you are doing your due diligence and making the contacts that will bring a good piece of property into your portfolio, remember the unique benefits of Commercial Real Estate Investing and know you are eliminating some major risks to your wealth.

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

Smile at your cash flow, your leverage and your depreciation and the fact that you can actually touch your property with your own to hands.

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

Article Source: http://www.simplepetcare.com/pet-articles

Considering investing money in the stock market any time soon? - Think again. Discover how Commercial Property Investment can increase your Cash Flow and Security.
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