If you’ve flipped houses, you know it can be a lot of work. And once you’ve flipped the house, you start over again. It gets old, fast. Think of the house as a cow. You raise it, kill it, eat it. Repeat. If you’re tired of the hunt and kill approach and wonder about the advantages of becoming a commercial real estate investor, there are two words you should know – cash flow. Think of the commercial property as a cow you raise, nurture, and milk. Here are 4 advantages to becoming a commercial property investor:
- Empires are built on cash flow. That’s why the investors, such as Trump, Zell, Zuckerman, are commercial real estate investors. They know that by applying leverage, the same principles you use when flipping houses, and some planning, you build your commercial real estate empire.
- Cash flow pays you over and over again. Cash flow forgives. Commercial property investors take advantage of the opportunity to survive risk. When they make bad investments, they insure the downside with a recurring base of income. That means they live to make another deal.
- Shelter your income. The IRS allows you take 2 deductions that reduce your tax liability: the mortgage interest deduction and cost recovery (depreciation) deduction. This means that reduce your income taxes by the interest and cost recovery you’ve taken. You have more money left in your checking account.
- Cash flow + Financial Independence = Time. You have the same 24 hours, 7 days in a week that everyone else does, including the most successful person you know. With your commercial properties providing you with cash flow, you enjoy free time, a meaningful life, relationships, and experiences.
Once you’ve built your empire, send me an email and tell me how you spend your free time.