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Wednesday, October 24, 2007

How Commercial Property can pay off your Las Vegas High Rise Condo

With the way the mortgage industry is these days, it's getting harder and harder to find solid investments. Couple that with the fact the stock market isn't much better than real estate, the question arises "Where should I SAFELY be investing my hard earned money TODAY?" Note the two bolded words: Safely and Today. Now consider those words when you hear the question: How can you turn one solid investment into two... without your pocketbook or bankroll even feeling it? Luckily for you there's a way to do just that. Here's how it works:

Say you have $600,000 that you're looking to invest. It could be in the form of cash, a bank CD, an IRA, whatever. There are commercial property sponsors out there that allow you access to grade "A" commercial real estate, including office buildings, retail centers, multifamily, etc. where you can purchase Tenant in Common (TIC) interests depending on how much money you need to invest. This is not timesharing! This is fee simple deeded real estate with all the benefits of traditional real estate ownership. What's great about TIC properties in general is that they're totally hassle free investments with absolutely no management issues on the investor's part. You'll never have to find a tenant, evict a tenant, do repairs, or anything else associated with investment rental property. The sponsor takes care of that all. You're left with a completely no-hassle investment in high class commercial real estate.

Now let's say you put that $600,000 into a TIC property that's paying you 6.5% interest contractually, even if the property is unrented (we'll go into that later). You've now bought a substantial real estate position which is earning you an interest payment each month in an appreciating asset. Then what you do is you put a deposit on a high rise condo unit. Let's just say you buy a unit at Juhl for $400.000 and put down 15% as an investor. Even in today's crazy market, you'll still find an investor loan at less than 6.5%. So what you do is you have the interest from your commercial purchase (which again is guaranteed and hassle-free) pay off your mortgage on your Las Vegas high rise condo unit. You'll never have to physically make a payment plus you'll be getting the spread difference from whatever your mortgage rate is and the 6.5%! So fast forward a few years and you'll not only be the owner of an appreciated commercial real estate asset, but you'll have your mortgage paid off and substantial equity in your condo - without even feeling it!!!

I'm surprised more investors with the means aren't already doing this. The key to all this is selecting the right TIC property sponsor. The Spectrus Group is one of my favorites due to its impressive and consistent record providing outstanding results to their investors. In 28 years of operation, they have never missed a payment to an investor and never have been late either. They provide investors with outstanding solid commercial property investments via their NNN Plus lease, which as mentioned previously, pays the investor on a contractual term regardless if the property is even rented or not. And if that's not enough, when it comes time to sell the property, 100% of the profits goes straight to the investor as well. It's low risk and you can do this today.

Cash flow..., appreciation over time... quality Class "A" commercial investment property. And if you do it right, a high rise condo to boot! What are you waiting for? Let's do this!

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