THE WEALTH-PRODUCING POWER OF COMMERCIAL REAL ESTATE TERRY HALE
understand real estate is the ticket to wealth, but
who have yet to buy their first “Commercial Real
Estate” property.
The key to successful real
“In real estate, you make money when
you buy and hold for Cash-Flow, not when
you sell!”
estate investing is using proven systems and a
different methodology of un-conventional wisdom
that produce results.
In other words if you buy it right you have built in
profit from day one. If you buy it wrong, well you
may never make money!
A Wise colleague of mine says…
The second drawback to the “buy, rent, & hold”
system is, and this is a biggie, the system only
“Wealthy people use systems. Broke
people do not”
works about 25% of the time! Why? Because
during most of the real estate cycle, prices are too
high relative to rents. And there are only three
The best-known real estate investment system is
ways to handle the problem – suffer through years
the traditional “buy, rent & hold” system. You’re
of negative cash flow, or pay a big down payment,
supposed to find break-even or positive cash flow
or don’t invest.
a property for a few hundred bucks a month (good
luck in today’s market!), buy it, rent it out to the
Yuck! Not much of a choice! Any one of those
tenants, than hold it long enough to make some
three choices could destroy your wealth creation
money (usually 5 to 8 years). But…
plans
forever!
What’s
the
alternative?
alternative is to…
Who wants to deal with tenant headaches
for 5 to 8 years?
Now, don’t get misunderstood here. This system
can work. But it has several cash squeezing
BUY
drawbacks…
The first is competition. The most recent figures
RENT
indicate that 93% of real estate investors use this
system or a variation of it. That means in today’s
world anytime a property comes up that’s even
close to fitting the “buy, hold” system, everybody
and their dog will be competing with you. That’s not
how you get the best deal! My wise colleague has
another saying…
HOLD
The