Predictability and Control. There are actually SIX controls.

1. You control income by raising rents.

2. You control the expense because you’re calling the shots.

3. You control the asset because you can sell it or refinance it whenever you want.

4. You control debt because you’re the one who arranged financing.

5. You control management because you hire the property managment.

6. You control insurance by choosing the type and level of insurance desired.

Gross Income: Total Rents(could be monthly or annual)

Operating Expenses: Annual operating expenses typically include taxes, insurance, utilities, management fees, landscaping maintenance, repairs, and advertising.

Net Operate Income: Effective Gross Income minus Operating Expenses.

Debt Service: Monthly Mortgage amount times 12 months.

Cash Flow: Net Operating Income minus Debt Service.

Cash on Cash Return: Annual Cash Flow divide by Down Payment.

Capitalization Rate: Net Operating Income divided by the Sales Price. - also known as Cap Rate.

What types of properties should I consider making offer on and buying? Here are a few rules of thumb:

1. Cash Flow!! - the property must have a positive cash flow.

2. Cash on Cash Return: We suggest a property with a 10% or higher Cash on Cash return.

3. Cap Rate: We advise on a Cap Rate of 8% or Higher.

Understanding Cap Rate: A cap rate is used as a measure of a properties performance without considering financing. Cap Rate is a standard industry wide term. A HIGH cap rate usually includes a higher risk investment and a low sales price. A LOW cap rate usually typifies a lower risk investment and a high sales price.

Myth 1: All the Good Deal are gone. The truth is as long as people believe in this myt that just leave more deals for you and I.

Myth 2: Investing in Commercial RE is too RISKY! The truth is to never invest in anything you do not understand. Your next investment is only as risky as your level of understanding in whatever you’re investing in. Go get the knowledge! Go Get Help! We’re here to advise you.

Myth 3: You need to be a millionaire and have good credit to get started. The truth is master lease techniques is on of the many ways of buying commercial real estate with a reasonable down payment but not involving a bank(no credit required).

1. Office Buildings

2. Land

3. Retain and Shopping Centers

4. Industrial

5. Multi Family

6. Storage Facilities

7. Mobie Home Parks

8. Hotels and Motels

9. Special Purpose Properties - Gas Stations, Restaurants, etc.

10. Hospitality

Commercial Real Estate is also a way of generating real long term wealth that pays you every month and potentially increases every year. As an investor, you can create a perpetual means of passive income for yourself - tax advantaged income that could last for the rest of your life and your kids’ lives. We know of no better investment strategy than commercial real estate to help you get out of the rat race and stay out while creating generational wealth.