Rock Bottom Blueprint: Are you looking for a rock bottom, no frills, Commercial Real Estate Blueprint?
Then look no further. My friend, you have come to the right place – Rock Bottom Blueprint. But please bear with me for a minute while I explain a few things. I promise that I will have a bonus for you at the end of this training.
So why is Commercial Real Estate the best investing vehicle on the planet? Why has commercial real estate created more millionaires than any other investment vehicle known to man? The answer is profound, but in theory it is really very simple.
When was the last time you spoke to your financial advisor? Did you ask them if they could invest your money in a tangible asset such as real estate rather than the stocks and bonds? Did they offer that alternative to you? I bet the answer is an emphatic NO! Not because real estate investing isn’t the greatest investment vehicle on earth, but because your financial advisor doesn’t have the knowledge or expertise to invest in the real estate arena. They don’t teach real estate investing in their preparation for their “Series Licenses.”
The great thing about real estate is that you can create wealth in many different ways. Below, I will list three and briefly speak about them. Don’t worry though, I didn’t forget about the Commercial Real Estate Blueprint Bonus I promised you. Here we go:
Generating Wealth in Commercial Real Estate
- Appreciation
- Leverage
- Amortization
As my mentor and good friend Dutch Mendenhall says, “Appreciation is free money that you don’t have to do anything for. Who can’t appreciate that!?” Sorry you guys, he is a little corny and thinks his jokes are funny. I promise I won’t tell you another one. Quite simply stated, when supply decreases, values increase. When demand increases, appreciation increases. Inflation and the lending market can also influence appreciation. Appreciation is a rise in the value of your property due to external factors uncontrolled by you personally.
When we talk about leverage, we are referring to piggybacking on the bank or another funding source to help us increase our returns. That’s right, we can leverage the bank and USE them to increase our pocket book. See, the banks don’t have all of the power. When we control a property worth $10,000,000 for $1,000,000 down, that is the power of leverage. Rock Bottom Blueprint just borrowed $900,000 from the bank to help us increase our cash flow. We go more into depth about leverage, the cash flow multiplier, in another article.
Now when we get these bank loans, we have notes we have to pay down for a specified period of time. Since we are dealing with commercial real estate and income-producing properties, we are generating income from the properties which help us pay that note on a monthly basis. If all is the way it is supposed to be, that income will cover that note plus some extra, called cash flow. Every month we pay that note, we pay down the principle. As the principle is reduced our equity is increased. The more equity we have, the more profit we realize at sale.
Sorry to run off on a tangent there but I thought those three powerful concepts were very important for you to understand. Hopefully now you are ready to see exactly how you can make those concepts work with our Commercial Property Blueprint. Go ahead and take a look at us— Rock Bottom Blueprint
Until next time,
Randy Rider
