The New Trend In Commercial Real Estate Investing
There was a time when investing in commercial real estate was reserved for a closed group of elite, ultra-rich individuals with easy access to capital and the right connections.
Fortunately, through technological advancements and changes to the law, this once ‘secret’ industry, has now opened its doors to the public! Today anyone with a computer and an internet connection can access commercial real estate deals and become joint venture partners on the most profitable real estate investment projects.
Take, for example, an experienced real estate developer who has found a great patch of land for constructing a 50-unit apartment building. He has done his due diligence and figured out that he can buy the land for $1 million, get a 50-unit multifamily property constructed for $6 million, and rent out each unit for a net operating income of $1,000 per month. Once most of the units are rented, the building will be worth $10 million. He can then sell them for an attractive profit of $3,000,000.
To get this project off the ground, this developer will require a significant capital outlay. He has found a bank that will finance 70% of the cost, meaning that he would need to invest 30% or $2.1 million into the project. Once the project is completed, his return on investment will be roughly 3/2.1 = 142%!
That is a great return on investment!
In the past, such an investor would either utilize his own capital, or find investment partners from his personal network of high net worth individuals, or other accredited investors. Today, however, with the introduction of real estate crowdfunding, he can advertise his project on one of the many online real estate crowdfunding platforms and globally reach thousands of investors looking to purchase a membership interest in the project.
This book is about the new trend of commercial real estate crowdfunding. It provides a basic understanding of commercial real estate, why the smartest investors focus on commercial real estate to build wealth, as well as the different strategies used to increase the return on investment. It also contains all the information you need to get started, including where to find good deals, how to get your own property funded and much more!
