On the recent social network Men TV, there is a good sharing of Rentapartment, Point2home. The author shared that commercial real estate is one of the ways to help investors get rich quick and effectively.
However, the article identifies that commercial real estate itself is not the destination of wealth but a way to achieve it and compare it to "commercial real estate as a giant." invisible".
I feel that the article has many interesting points that investors can consider for future real estate investment decisions. Please share it for everyone to read.
Do you think of the winner?
The person who wants to become a billionaire will think: "Someday, if rich like Donald Trump, I will own dozens of properties in the city."
People who will become billionaires in the future have another thought: "The way to become rich like Donald Trump is to start with owning a few commercial properties."
Commercial real estate is not the destination of wealth but the way to achieve it.
Commercial real estate is the invisible giant
During this time, in any newspaper you will find news items, mostly negative about the housing real estate market. But there is also another huge real estate market, less noisy, but independent of the rise and fall of housing. That is the commercial real estate market. So, what is commercial real estate?
What is commercial real estate?
By definition, commercial real estate is the following real estate products:
Office buildings (including all, from skyscrapers to small buildings with only one dental clinic).
Apartments with at least five rooms.
Shops, shops, can be located in large shopping centers or small local shopping centers.
Hotel and restaurant.
Industrial zone (factory, warehouse, etc.)
The opportunity to get rich in commercial real estate is extremely large for a simple reason that most people think that they can never own this property.
If real estate investors realize that they can get rich from commercial real estate, they will occupy this market without our turn. So realize that you're lucky because the commercial real estate market is still a mysterious place and lacks information for millions of investors.
These investors claim that they should not invest in commercial real estate business because they envision big barriers to investment. Here are 3 of the many psychological barriers that prevent investors from participating in the real estate market:
"The bigger the building, the more money I have to pay for the initial payment."
“I can't afford to own a shopping mall; I don't know anything about retail business ”
"Good contracts have to be long and not my turn: I usually have bad contracts."
However, the reason below will make you change the way you think and realize the great potential of investing in a commercial property.
Cash is king. It will help you free.
If you have a lot of assets but it is only on paper, there will be times when you can't even sell your bills. You are rich but it is only really available when selling property or reinvesting. You do not receive money monthly.
Understand that lubricants in business are a stable cash flow. No matter how strong your real estate machine is; If there is no cash flow, its gearbox will stop.
Commercial real estate creates huge amounts of business lubricants - cash flow. Certainly, you can totally get rich by investing in a household market. But best, you should invest in the chain of houses sequentially so you can get cash flow every month as you like.
Even with only one commercial property, you can still hope to receive regular checks every month in your inbox.
First, the value of these checks may not be large, because your number one priority is to ensure you can pay the cash flows paid for the property. You must pay the monthly operating costs, and the cost of capital (for major repairs) will arise.
If you use a proven and proven purchasing system, you will get not only enough money to cover your property needs, but you can even pocket the excess money. again.
Your first goal is to earn the same amount of money you can earn with your full-time job. At that time, you will give up your current job and focus entirely on investment.
After you have achieved this goal, you will definitely set many other goals: Maybe you will use the excess money to buy more assets or help struggling relatives, pay for college child, take a long vacation or all of the above.
Money will help you feel free. It will give you the confidence and ability to do things that you have never done in your life.
You can think big things but only start from very small things.
There are two very important characteristics of the commercial real estate market: This market allows you to get as much money as you want, and also allows you to start small.
You will also encounter little risk in the commercial real estate market. It may sound strange why a property larger than a house has a lower risk than a house. But it is the truth.
Suppose you are renting a unitary apartment. But no one rented the house, 100% sure you don't have income from it and you will have to pay the mortgage by pocket money.
With a commercial property, you will have a lot of tenants. If a person doesn't hire anymore, others will come to rent. The cash flow will be guaranteed for most, if not all, pledges you pay. Each tenant is like a support pillar for your investment.
What do you think about the share of commercial real estate investments shared by Men TV? Perhaps it is not enough to guide you step by step in getting rich quickly by investing in real estate, especially commercial real estate, but surely also giving you some ideas and knowledge?
Souce by Zillow real estate