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Q. Is this really a good time to be investing in real estate?
A. YES!! As a matter of fact, this is probably the greatest buyers market any of us will ever see in our life times. During a economic downturn, smart money is buying, dumb money is on the sidelines. Even though the recession is over, many people are holding on to fears and misconceptions about investment real estate. This is a HUGE mistake. Many people will secure their financial future during this limited buying opportunity, the question is will you be one of them.
Q. Why do you buy foreclosure properties?
A. In real estate, rule number 1 is “You make your money when you buy” That means we need to buy below market value. Foreclosures are not only available in abundance, but they are bad loans on the books of the banks and need to be sold. More often than not, these sales are at pennies on the dollar.
Q. This sounds like a good way to get rich quick. Is it?
A. Rich is a relative term. For some people $100,000 a year would be life changing. For others it would be a drop in the bucket. However, this is not a “get rich quick” I personally am not aware of anything that is. Investment real estate is and always has been a “get rich slow” investment. That being said, properties that are bought and sold with profits of $10,000- $40,000 will certainly make an impact on anyone's bottom line.
Q. I have no experience at this. Am I qualified.
A. The reason so many people lost money during the real estate crash was due to exactly that reason. Many people jumping in the game with little to no experience. Bad idea. What we have done is taken the need for experience out of the equation. We will do the entire transaction for you. No guessing on your part. You agree to the deal, and we drop a completed, rented property in your lap. We will even manage the property. The only qualifications that you will need is to be able to purchase the property. If you have no money at all and a horrible credit situation you will have some problems. A credit score of 650 or above should get it done.
Q. I live out of state, can I still participate?
A. Absolutely! Due to the fact that this is a “Turn Key System” you can live anywhere in the country. There are hundreds of investors from all over the country that buy in our area.
Q. Why do you recommend Pittsburgh?
A. Simple. It is the number 1 market in the country. This area never suffered a down turn in values nor were we affected by the recession. The properties also “CASH FLOW” due to their affordability.
Q. How are you different from other companies?
A. The major difference is the fact that we are all FULL TIME INVESTORS with over 100 years experience between us. We “DO” this business not just talk about it. Our track record is one that is tough to match. We have appeared on CNN, FOX, ABC, NBC, any many national newspapers, magazines, and radio programs. We also have our own real estate brokerage and property management company. Like I said, we “DO” the business.
Q. I have no desire to be a landlord or deal with tenants. Why would this be something I should consider?
A. You are not alone. There are thousands of people all over the country that would love to have the cash flow and tax benefits of investment real estate but they don’t want the hassle. With the turn key system we have created, investment real estate can now be a totally passive investment for you. We will handle all aspects of managing the property and tenants. You receive the benefits, we do the work.
Q. Can I really use my IRA or 401K to purchase properties?
A. You sure can. As a matter of fact, that is probably the safest thing you can do. Most people lost 30-50% recently in their retirement accounts. If you had invested in real estate here in Pittsburgh you would have lost none of your money. Actually, it would be growing tax deferred.
Q. Are there any risks involved?
A. Real estate investing is simply a “calculated” risk. The risks are minimal and can be easily managed. Keep in mind that there is NOTHING that you can do that has zero risk. The stock market, as many are finding out is a HUGE risk. But in our opinion, the biggest risk you could possibly take is doing nothing at all. That is a risk that you cannot afford.
Q. How do I get started?
A. Just pick up the phone and call us for a no obligation interview. We will educate you on the process and help you determine the suitability of this program for your investment needs.
Q. What is commercial real estate?
A.Commercial real estate encompasses a variety of various land and building uses where the purpose of the property is the generation of profit. Businesses and corporations often own the real estate they use for conducting commerce. These properties and owners are referred to as owner/users of commercial real estate. Investors make up the other group of commercial real estate owners. These people generate income from the real estate by collecting rents and other charges from the tenants occupying the space.
Q. What kinds of commercial properties make good investments?
A. The four main types of commercial investment real estate are multi-family (5+ units), office buildings, retail (shopping centers), and industrial/warehouses. Additional categories of commercial investment property include mobile home parks, self-storage facilities, hotels, assisted living, single tenant net-leased, and land. All of these product types can be profitable in the care of an experienced operator. It is important that you understand or work with partners that understand the intricacies of operating the type of investment you are acquiring.
Q. I heard commercial real estate is risky… is this true?
A. All investments carry with them a certain amount of risk. As a savvy investor it is your responsibility to understand the risks associated with any type of investment. The more that you can plan for the risks inherent in any investment and limit the downside, the more profitable and less risky it will be. The easiest way to limit the potential risks within a commercial real estate investment is to seek the council of experienced investors that can help you assess and mitigate any downside. In the hands of experienced operators, commercial real estate is one of the safest and most profitable investments available anywhere.
Q. Doesn’t it take millions of dollars to be a commercial real estate investor?
A. If you want to buy the Empire State Building then the answer is yes. If you are willing to start more modestly then the answer is absolutely no. With as little as a few thousand dollars you can begin to build a commercial real estate empire. There are many ways to structure transactions and a large amount of capital is not always a prerequisite.
Q. Is this the same stuff I see on late night infomercials about real estate investing?
A. No. Unfortunately the investment real estate industry has been inundated with “gurus” all selling the latest technique or strategy to get rich quick. There is no doubt that you can get rich in real estate, however, it requires an analytical and disciplined approach. Most “gurus” are selling tricks or tactics that may work in certain situations but can leave investors in very vulnerable positions or in unprofitable investments. By understanding sound financial decision making coupled with years of experience, we take an analytical approach to real estate investing that mirrors more “traditional” financial advisors.
Q. How do I make money with commercial real estate?
A. One of the major advantages of investing in income producing commercial real estate is that there are multiple ways in which you can profit. Cash flow is the money you keep after paying all mortgage and operating expenses. Principal reduction is the systematic wealth building effect of your tenants paying off your mortgage. Appreciation can be either market driven or forced by increasing the income being generated by the property. Depreciation is an accounting term that allows you to recapture tax expenses by deducting for the useful life of the property on a yearly basis. The cumulative effect of these four factors often result in tremendous returns over the life of the investment. A skilled real estate investment advisor can help you make educated decisions about the viability of each opportunity that is presented.
Q. I don’t want to deal with tenants, property maintenance, or the day to day of owning commercial real estate. Is there a way I can invest without having to deal with these issues?
A. Absolutely. We offer a variety of solutions that allow our clients to be as hands-on or hands-off as they want to be. The greatest strength of our firm is that we have a platform to provide all of the services investors need to reap the tremendous rewards available through real estate investment without the problems real estate investors normally face.
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