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How do people get rich from commercial real estate?

i dont understand.. if you invest in a building or something, how is that going to make you rich?

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4 Responses to “How do people get rich from commercial real estate?”

  • Bruce:

    Smart investing is generally about getting rich slowly. The big benefits of commercial R.E. is income streams from hopefully stable tenants like a Starbucks, or Walgreens for example. Also, there are tax benefits to all real estate, and especially that used for income. Also like most real estate, there is the potential for appreciation in value, when you re-sell. One last benefit is leverage, meaning using smaller amounts of $ to control property for instance if you had $1 million dollars, it’s generally bettter to put $250k down on 4 properties then the whole bundle on just one. You get all these benfits times 4, of course there is more risk as well. That is some basic idea, but you really should read up a lot more and study your market before you jump into anything.

  • Dagdagan:

    Usually, commercial real estate is bought with a great deal of leverage. That means that the buyer only puts a fraction of her money into the deal and borrows the rest from the bank. If the value of the building increases, the buyer can get rich quickly because the leverage magnifies the gains. BUT on the other hand, if the value of the building decreases, the owner’s interest can just-as-quickly decrease….even go to $0.

  • Sijo M:

    You should identify the market before investing into real estate. Identify what ever market you are going for than make you decisions. This only the type of the iceberg but it is what you need to get started As you do your market research many other issues will come up. Until you identify your market you can’t make much profit.

  • Harmony:

    was talking with friend from affluence.org about this… he leases his building as well as buy/sell. right now youre not going to get rich quick with this

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