319. The Power of Creative Capital in Commercial Real Estate
MAY 15, 202528 MIN
319. The Power of Creative Capital in Commercial Real Estate
MAY 15, 202528 MIN
Description
<p data-rte-preserve-empty="true" style="white-space:pre-wrap;">Key Takeaways:</p><p data-rte-preserve-empty="true" style="white-space:pre-wrap;">Creative Capital Matters More Than Cash</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">You don't need all the money upfront to invest in commercial real estate</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Focus on controlling the deal and finding creative financing options</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Explore strategies like seller financing, lines of credit, and investor partnerships</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Financing Strategies</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Consider 100% seller financing for commercial properties</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Use lines of credit strategically if investment returns exceed interest rates</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Partner with experienced investors to leverage their track record</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Investment Goals</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Aim for 18-22% internal rate of return</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Target 20% annualized cash-on-cash return</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Look for deals with multiple value creation opportunities</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Networking is Critical</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Attend real estate investor events</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Build relationships with potential partners</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Do thorough due diligence on potential investment partners</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Risk Management</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Prefer fixed-rate loans over adjustable-rate mortgages</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Pay cash for land investments when possible</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Always have a clear strategy for debt service and cash flow</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Focus on Creating Value</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Look for opportunities to provide affordable spaces for businesses</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Consider unique amenities that attract tenants and employees</p><p class="" data-rte-preserve-empty="true" style="white-space:pre-wrap;">Think creatively about property development and usage</p>