Some people are profitting big during this recession and downturn in the real estate market.
While millions of Americans are suffering economically, some ordinary folks are making huge sums of money combining two things you’d least expect: Real estate and the recession. As the housing market continues to plummet, a few commercial real estate asset classes are skyrocketing and some folks have learned how to acquire them with no money, credit or previous real estate experience.
These rags-to-riches stories are using two very clever and patent pending strategies taught by Jason Gilbert at the Commercial Training Institute. One strategy is used for land and the other for income property.
For income property, students learn to locate properties that perform better in a recession but won’t sell because of high vacancies due to poor management or marketing. Instead of buying them, the students lease the entire building, hire a local expert to fix the management or marketing problem, and pocket 100% of all the new income which is can easily be $10,000 to $50,000 per month on small to mid size properties. The student also gets an option to buy the property at today’s value, then sells or exercises the option to buy it when it’s worth much, much more and fully performing. Called “Master Lease Option”, it’s literally a try-before-you-buy strategy that eliminates most of the risk and requires no money to get in the hot commercial real estate game. If the deal turns out to be a dud, you aren’t stuck with it as the new owner and don’t wind up one of those motivated, distressed sellers. You don’t own the property until it’s worth far more than your option price and you’ve had time to test drive it a while.
For land deals, students locate owners of prime commercial land and simply get them to agree to partner with a developer. The owner makes much more money vs. a sale, and the developer doesn’t have to buy the land and can get easy development financing, which otherwise might be impossible due to the credit crunch. The best part is the CTI student gets a piece of ownership of the development for simply locating and bringing both parties together, thus avoiding all the time, expertise, risk and money required to buy and develop land.
Pretty inventive commercial real estate investing strategies
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