Commercial Real Estate- Can I still make money in today’s volatile Commercial Real Estate Market?
In times of uncertainty prices drop, this is by far the best time I have ever seen to make a mint. If you are looking to become financially free, create generational wealth not only yourself but your families, family, this is the time to make it happen. Remember the Poor and Middle class buy stocks, real estate and other investments when the prices are high or near all time highs, well the rich buy on significant dips, or downturns in the market. In today’s market you are actually buying properties at prices that would have to go back into the late 70’s-early 80’s.
My first foray into real estate was the home I grew up in, my Dad purchased a 3 bedroom 1 bathroom brick bungalow on the Northwest side of Detroit for around $18,000 that was in 1977. Over time that home had appreciated to over $120,000.00, but recently homes on the same block sold for $10,000-15,000.00. It was almost 17 years before I made my first real estate deal, but this time it was 8 unit apartment building that could be acquired at $100,000.00, which breaks down to $12,500.00 per unit. In the world of Commercial Real Estate, your acquisition will be broken down into a per unit price or a square foot price. For this case $12,500 a unit was a great price, generated a good cash flow, before you buy make sure you can make a profit, always do your homework.
The reason I even mention this particular property is to show you how real estate has done a 360 degree turn and if you purchase the right investment it will make you money. Let me continue with the story, as I mentioned I purchased this particular property at 100K, made money for a couple of years got bored and sold for $200K, that is almost a 100k profit in less than 4 years. The great part about commercial real estate is that the players in this arena are few and far between, so if you build a solid reputation it will follow you, the same property came back on the market recently for less than I acquired it in the mid 90’s and I was offered the property again with the similar numbers. 8 units at $500 per unit which equals $4000 per month in gross income on a purchase price of $70,000.00. In this case I can make money even if the building is only 50% occupied. This is just some of the great deals that are available for investor that are willing to take a chance and try something different.
The masses are typically wrong, so if everyone is buying that is absolutely the wrong time to buy, unless you can purchase from a motivated seller. In good and bad times you will find individuals that are motivated for a multitude of reasons. The goal of a savvy investor would be to buy right, buy on your terms and conditions. If you are like many investors today looking for alternatives to your single family woes, please contact The Power to Be Free, we specialize in showing you how to take your Real Estate business to the next level.
Darrick H Scruggs
CEO
The Power to Be Free
Tags: commercial investments, property investments, Apartment Complex For Sale In Michigan, commercial real estate seminars, robert kiyosaki, commercial property investments, michigan commercial properties
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