Traditional Investing versus Commercial Real Estate
This should be a question you should ask yourself early in your investment cycle. Which path to freedom I can take? I have chosen the latter; it gives me more control over my future. At the beginning, I have more to learn, and more responsibility. But in the long-term, I would not have had it any other way.I have had my fair share of problems: buying in the wrong areas, paying too much to create a positive cash-flow. You name it, I have experienced it. The great thing is that I did not quit. I just took my lumps and kept going forward. A tweak here, a different strategy there. And bam, I was on track to turbo-charge my retirement.
The main thing I love about Real Estate is that I can leverage other properties to obtain new and more profitable ones. I do not confess to be Jim Cramer, but there’s not too many traditional investments that I can use to leverage more profitable investments in the same arena. I do not in any way diminish the need for traditional, if not boring investments in stocks that we consider to be Blue Chips. But will that really change your life in the short term?
If we are honest, we have all heard the speech from our Financial Planner, trusted family members, about investing in your IRA, 401K, or savings account. We have probably all heard of the Rule of 72 as well. If we can somehow concoct the correct stock, mutual fund portfolio, we can expect over a period of time to have an 11-12% return of our initial investment. Well let’s be honest here.
In the beginning, we usually have a small amount to invest. So, if I can double my initial investment in 6-8 years, it seems significant. But, if I can only invest a minute amount, if it doubles, what affect will it really have on my lifestyle?
In my opinion, it will create the security blanket that we all need. Or create reserves in the bank, and to assure future Real Estate Deals. We can play it safe, and wait for 30 years to get that gold watch, and a pinch of our regular income. Or we can take some calculated risk, and turbo-charge our investments. What would it be like to leverage a 20K investment into becoming a Millionaire?
This has happened on numerous occasions. You too can make it happen with the correct training. We can learn in either one of two ways. We can pay for mentorship, and eliminate 90% of mistakes. Or we can do it the hard way, and learn through the school of hard knocks. To me this is a very easy choice. I would much rather take the limited amount of money I have, and create a fast track to success, rather than to try to pioneer something that has already been time tested.
The laws of Real Estate are very simple: find great locations, and buy at a discounted price. Use built up equity; hold for long term appreciation. And for the savvy investors, depreciation. That are 5 different ways I can make money, if I compare that to traditional investments, I will have a hard time coming up with more than 2-3 ways I can make money.
I admit to not being a member of Mensa, but if I make money in the traditional equities market, it will be hard for me to take a depreciation credit. I suggest that you make your money in the Real Estate (Commercial Real Estate) Arena, and invest the profits in something safe that you can use to conserve the tremendous wealth you have created in the excited world of Commercial Real Estate.
If you are looking to step up and take a few chances to take control of your life, than you need to be a part of The Power to Be Free. We are creating Freedom one investor at a time. It can happen to you as well, if you understand that it will take time. If you keep your eyes on the prize, you will in no time at all, create a lifestyle that others envy, and you have only dreamed about. It all starts and finishes with the decisions we make, or do not make. Someone today will invest in Real Estate, and start their journey to becoming free. What about you?
Darrick Scruggs
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