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.