The Money Making Advantages of Commercial Real Estate Or Multi ...

Investing in commercial or multi-unit properties is the secret that wealthy real estate investors have found to accomplishing all of these important real estate investing goals.

What are the types of commercial or multi-unit properties available to real estate investors, even new investors? What are the specific advantages of investing in and owning commercial or multi-unit real estate

Multi-unit properties include a wide range of investment options:

Office Buildings (small two unit to a high rise office building)

Retail Stores (small retail stores to a giant shopping center),

Industrial buildings (small shops to a huge industrial park) or

Self Storage Record Storage or private (from small to large self storage complexes).

Key Advantages of Investing in Commercial Properties or

The ten key advantages of investing in commercial or multi-unit properties are:

first Higher income potential,

2nd Lower Risk on Vacancies,

3rd Less competition from other real estate buyers,

4th

More Flexible Sellers,

5

Depreciation Tax Shelter,

6 ?Triple net leases? and Tenants paying expenses,

7th Equity Build-Up,

8th Solid economic value,

9th Massive leverage (or partial seller financing seller finance),

10th Long term capital appreciation.

Multi-Unit/Commercial real estate has a higher income per square foot than single family residential Investments Private Client, or even apartments, and a Higher Income Therefore potential for the investor.

multi-unit real estate by its very nature has the advantage of lower vacancy risk, because it always Involves two or more units. . The vacancy risk with commercial or multi-unit properties is much smaller than single tenant investments analyzed as a single family home, because the risk is spread over several vacancy units

For example: One out of office being vacant 20 offices is only a 5% vacancy. For the multi-unit investor, this vacancy is 5% Significantly less financially traumatic, than a single family house being vacant, and the real estate investor experiencing a very painful and costly 100% vacancy.

Another point in favor of investing in commercial or multi-unit properties is there is less competition from other investors. This is because some investors are not comfortable in seeking larger investments as apartment, mobile home park, office building, retail strip center, or industrial complex. These zone types of larger real estate investments are out of many peoples? comfort. Paradoxically the owners of commercial or multi-unit real estate are usually more flexible sellers. Multi-unit property sellers are not as emotionally when selling their property. The sale of most multi-unit properties examined as an office building, retail strip center, or industrial complex, is simply a business decision. Commercial or multi-unit property sellers are in a business frame of mind multi-unit real estate sellers are more likely to understand and agree to the request from the Buyer for either 100% Seller financing, secondary or partial Seller Financing. These chemicals are likely sellers to agree to a partial seller carry back financing, examined as a second mortgage, trust deed or second behind in institutional lender first. [In Canada, this is commonly referred by to as "vendor take-back financing."] Investing in and holding onto multi-unit or commercial real estate provides significant tax shelter to the multi-unit investor through depreciation of the building and improvements. The depreciation write off allowed by the IRS and most States, then shelters the massive passive income from the commercial real estate or multi-unit properties, examined as an office building, a retail strip center, or at industrial complex. Another advantage to the investor

is that in many commercial or multi-unit properties the tenants pay all the building?s operating expenses. This is especially true in ?triple net lease,? which are commonly found in office building leases, retail leases, and industrial leases. In these ?NNN leases,? the lessee in addition to paying the monthly base lease payment, the lessee also pays for their ?pro rata? portion of the entire property?s expenses. The lessee with NNN lease that is specifically pays for their portion of the real estate taxes, property insurance, and maintenance.

The tenants? lease payment provides the commercial or multi-unit owner with the cash to make the mortgage payments, Which results in the owner having a nice equity build-up over time.

Investing in commercial or multi-unit properties has the advantage of providing solid economic value. This is because most existing office buildings, retail strip centers, industrial complexes or can be purchased for less than replacement cost, or in other words, the cost to build one new.

Commercial or investment real estate search as office buildings, retail strip centers, industrial complexes or, enjoy the advantage of financial leverage with long term fixed rate debt institutional. Another option is for the Possibility of 100% Seller financing, or a combination of institutional financing combined with partial seller financing. Holding on to multi-unit or commercial properties over the long term will Provide the investor with possible Increased cash flow and capital appreciation through higher rents over time. The Increased cash flow can lead to long term massive passive income, with appreciation as the frosting on the cake. Due Diligence is Essential for Commercial Investments

The due diligence process in multi- real estate unit begins in the initial interaction with the seller, or the Seller?s Agent or Broker Commercial Real Estate. The due diligence process in multi-unit real estate is well underway in the contract negotiation phase.

A multi-unit real estate investor needs to clearly identify to the seller exactly what will be needed to intelligently analyze the potential multi-unit investment. The investor should frame the request for documentation with search phrases as, ?in order for me to make an informed intelligent business decision I will need the following documents ??

Generally multi-unit property owners are more knowledgeable and sophisticated. Start out with a simple request for basic information, seeking as a current rent / lease roll, copies of all the current leases, and the income and expenses for the multi-unit property for the last two or three years. The more sophisticated the Seller, the less they are surprised or upset by a comprehensive detailed list of items needed for the complete due diligence on the property.

Most Sellers? or their agent?s, will give what an investor asks for in a timely manner. Only Seller?s who may be hiding something buyers will refuse the reasonable request for information. If the Seller or their agent refuses to Provide the information requested, then the potential buyer should be prepared to just walk away from the deal. GOOD MULTI-UNIT INVESTMENT HUNTING! id=?article-resource?> , Ph.D. Chief Enlightenment Officer

The Leadership Success Institute and Institute intrapreneurship
HowardEdwardHallerPhD@gmail.com Howard Edward Haller
, Ph.D. bought his first home in Glendale, California, with nearly nothing down, at the age of 22, at 44% below the current market value. He has been involved in Commercial and Investment Real Estate Brokerage, finance, and development for over 25 years.

Dr. Howard Haller has personally completing well over 5 million in Commercial, Industrial, Retail, Multi-Family, and Residential Real Estate transactions. Dr. Haller has personally managed over billion of commercial real estate when he was senior vice president of United Artists and Telecommunications Inc. Haller has also personally arranged over .57 billion in financings for residential, commercial and multi-unit real estate. Dr.

Haller has been a Licensed Real Estate Broker in California for 25 years. He is a Licensed California Engineering Contractor and has been a Licensed California General Contractor for nearly years 20th He has built or project managed the building of well over 2 million square feet of ? apartments, theaters, retail, office and commercial / industrial buildings.
Dr. Haller is the president of Haller Companies, and the Executive VP & COO of American Realty Capital Advisors Inc. in Laguna Hills, CA. mailto:HowardEdwardHallerPhD@gmail.com

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