Posts by Richard Matthews
The Terry Hale Show Episode 4
How to Buy Time With Commercial Real Estate
TRANSCRIPTION
Hey, this is Terry Hale,
commercial real estate trainer.
How great would it be to have
the ability to buy more time?
Wouldn’t you go and buy an
extra 10, 20, 30, 50 years?
It’d be great! Unfortunately,
we can’t buy more time,
but we can change some things, right?
We can create financial security today,
so that way it’ll free your time
so you can stop swapping
hours for dollars.
That’s a really important point.
I wanna talk about how to buy time
with commercial real estate,
because I buy time with
commercial real estate deals
on each and every transaction.
Let me give you an
example of how to buy time
with commercial real estate.
There’s something to be
said about making money,
and people love to make money,
and when people get a little greedy,
when it comes to, say, interest rates,
when we’re creating seller financed notes,
what I do is I do something called
an escalation of interest clause.
What that means is if
I know that the seller
will only carry, say,
three years (36 months),
and I lock them in at a 5% interest rate,
I know that I can buy more time
if I play on the greed of them
wanting to make more money
with a higher interest rate.
So what I’ll do is an
escalation of interest.
What I’ll do is I’ll start off with, say,
if I want more of a seven-year deal,
obviously if I only had a three-year deal,
that means I’m buying four years.
How can I buy four years of time?
What I’ll do is an escalation of interest,
so the first three years is 5%.
On year four, it jumps to 6%.
And on year five, it’ll jump to, say, 8%.
Year six, 9%, and year seven, 10%.
By doing that escalation of interest,
they look at it and they
calculate all their money,
and they crunch all their numbers,
and they count all their beans,
and at the end of the day
they look at how much
money they’re gonna make,
and then they agree to a seven-year deal.
What they forget about is
the appreciation factor.
When you have a property and
you own it for seven years,
I can guarantee you 100%
with commercial property,
without a shadow of a doubt,
you hold something for seven years,
it is gonna go up significantly
with just appreciation.
So, this escalation of
interest, you can buy time.
I hope you enjoyed this segment.
If you like it, go ahead and
look below at all the comments
and click the link and
engage with me again.
I appreciate you. Take care
and we’ll talk real soon.
The Terry Hale Show Episode 3
Four Reasons to Keep Your Commercial Property
TRANSCRIPTION
Hey this is Terry Hale,
commercial real estate trainer.
I wanna talk about 4 reasons why we keep
commercial property and don’t fall victim
to selling your deal. Like you know,
on the residential deals,
what are you gonna do?
How do you make your money?
They say you make your money on the buy.
What does that mean…you
make your money on the buy?
That’s the equity spread,
your negotiation technique
to be able to buy it low enough,
then when you resell it,
the spread is where you make
your money and that’s why they say
you make your money on the buy.
But you know as well as I know
that the only way you make money
in residential house flipping
is when you sell the house,
and then your back to square one again.
Level of insanity. Stop it! Stop.
What I want you to do is
focus on reasons to keep
commercial real estate, so
just do one deal in commercial,
create financial security
for passive monthly income
for the rest of your life.
Four reasons to keep it:
Number one is appreciation.
If you had a time machine and
you could zip back 20 years
and buy commercial property,
and zip back today,
I guarantee you’ll be a
heck of a lot wealthier
than you were. So appreciation is key.
Number two is cash flow.
We wanna keep these
properties for cash flow,
for monthly passive income.
That’s financial security.
If you deplete your funds in
your bank account, guess what?
Next month people are
occupying the space, poof,
that money’s back in there again.
And that is powerful. That’s
the power of cash flow.
So appreciation, cash flow. The next one
is going to be depreciation.
Good old Uncle Sam, he
let’s you write it off,
which is great to create
these types of write-offs
in commercial. They’re heavy write-offs
and keep more cash in your pocket.
Last thing is cash out.
Now, this is the big one.
What we do is we use my
techniques to reposition property
that’s got high vacancy. We
fill it, we reposition it
with low interest permanent
debt, which is a non-recourse
structure, no credit check needed,
and all the deals we do we’re
bridging private capital.
And then we create all this value.
And then when we refinance,
we can do cash out refi.
We can take out a bunch of capital,
sometimes over six figures or more,
and you do not pay taxes on
that money. No, you do not.
You don’t pay taxes on that money until
you sell the property. But
then what you can do is
what all the wealthy people do.
You do a 1031 tax-deferred exchange.
You still don’t pay taxes on that money,
you’re rolling into a like
property that’s a little bigger,
in a better location, with
more meat on the bone,
and continue that snowball
of building wealth.
And that cash flow that you
took out on your cashout,
is net spendable cash.
I hope you liked this segment.
I look forward to engaging with you.
Go ahead and look for the link down below.
Check out the comments, leave a comment,
and I look forward to engaging with you
here again real soon. Take care.
The Terry Hale Show Episode 2
Are You Struggling To Find The Right Commercial Real Estate Deal
TRANSCRIPTION
Hey, it’s Terry Hale,
commercial real estate trainer.
So, are you sick and tired
of mediocre, broken systems
that don’t teach you anything?
I mean, if you’re struggling right now
with finding the right
commercial real estate deal,
understanding what it is
that you’re supposed to find,
maybe evaluating to understand the upside
or structuring the terms,
getting seller financing,
getting through to the broker
so they can actually put you
in touch with the seller,
bridging the money, you know?
Maybe credit is an issue.
All these concerns.
What I’m gonna do is create
a really cool video series
and solve all of these concerns.
All I ask you to do is continue to engage,
and I will deliver.
I look forward to it and talk real soon.
Take care.
The Terry Hale Show Episode 1
Can You Get Seller Financing In This Market?
TRANSCRIPTION
Hey, this is Terry Hale,
commercial real estate trainer.
I’ve been getting asked this
question over and over now.
what about seller financing?
Can you really get seller
financing in a market like this?
This market, current, today, right?
And the answer is, absolutely you can!
Regardless of the market conditions,
if it’s red smoking hot or
if it’s a cooled-off market,
because it is cyclical,
it goes up and down.
The reason why we get seller financing
is because we can justify the reason.
We get seller financing.
So, if there is a property
and it’s not bankable,
meaning a financial institution
will absolutely, 100% not finance it.
Maybe it’s got high vacancy.
Maybe it doesn’t have clean books,
a trailing 12-month
profit-loss statements.
Maybe it’s just in a condition
where it needs repairs.
All these reasons.
We can justify seller financing,
because we’re willing to pay the price,
and we’re buying the property right,
and we’re getting the right terms.
So, please don’t think that seller
financing is a difficult task,
because there are more people out there
willing to carry paper.
It eliminates banks.
You don’t ever have to walk
into a bank and get a loan.
And here’s a little secret
tip for you, alright?
Everything we’re doing is
non-recourse financing.
Non-recourse, meaning
no personal guarantees.
Not your personal credit.
Everything we do is non-recourse.
You can do as many of
these deals as you desire,
build millions of dollars in wealth
and have fun doing it!
So, join me if you like what you’ve heard.
Go ahead, look below
for the link, click it,
and come and watch and learn,
and let’s get together,
and let’s build some amazing wealth.
I look forward to engaging
with you again real soon.
Take care.