This week we celebrate our Nation’s Independence. Our country was founded on basic principles including individual liberty. One important aspect of individual liberty is financial freedom. Financial freedom affords you the ability to be who you truly are and do what you really want in life.
Now, what does commercial real estate have to do with financial freedom? Most wealthy people have real estate as an essential part of their portfolio. Real estate has the attributes of generating income and consistently increasing in value over time. It’s like a golden goose!
Many people are now seeking to get into real estate, and especially commercial real estate. There are a lot of places to start. There are a lot of “gurus” out there willing to teach you.
One popular strategy to get started in commercial real estate is to “syndicate” your deals. This is a fancy word for getting a bunch of people together who each put in some money and jointly own the property. Each person gets a share of the income and a share of the capital gains. (Plus a share of the expenses!)
One thing you might not know is that you can syndicate a deal to come up with your down payment and maybe some operating capital and also use debt for the main part of your financing strategy. This gives you maximum leverage, and is the chief reason why wealthy people look to real estate as a key tool in building their portfolios.
The key principles here are OPM and OPC—Other People’s Money, and Other People’s Credit. By leveraging these two resources, you are building your own wealth with relatively little of your own money. What you are investing is your “smarts” in putting the whole deal together.
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This blog is not about how to get rich in real estate, but to let you know that whatever strategy you pick in commercial real estate, we hope you will include Sofia Capital Ventures to play its part. Collectively, we have 50+years of experience in both residential and commercial real estate. We’ve done it all! Built wealth, bought properties, financed them, and profited! If we can help you on your path to financial freedom, please give us a call!