Welcome to my “Getting into the commercial real estate.”
The commercial real estate has a very wide range. As a matter of fact, all the properties except for the purchase of the property for the purpose of residence should buy the property for investment purposes.
While many customers are buying property, there may be some customers who are investing in real estate without clearly knowing how much revenue they are willing to invest. There are some customers who vaguely invest in commercial real estate and expect to earn enough income with little effort.
Of course, we have already purchased commercial real estate, and some customers have sold and bought a lot of accidents, which is not as good as real estate experts.
While many customers are buying property, there may be some customers who are investing in real estate without clearly knowing how much revenue they are willing to invest. There are some customers who vaguely invest in commercial real estate and expect to earn enough income with little effort.
Of course, we have already purchased commercial real estate, and some customers have sold and bought a lot of accidents, which is not as good as real estate experts.
The following is the case of a customer who was contacted by phone because they could not keep their money in the bank. The sum of all the cash is about $ 1 million, and it was a vague question where to invest.
From the voice of the person who called, I felt that my age was heard. And I was able to predict that he would not be running the business. Income that does not provide a large labor force and can be expected to earn is called passive income, or passive income. Investments that invest in commercial real estate and expect earnings are all investments in this category.
For example, if you look at a shopping mall, the net operating income of a building worth $ 1 million from today's prices should be around $ 50,000, depending on the location and the type of business you have.
This translates to less than $ 4,200 per month. This is a calculation that is made when a total purchase amount is purchased in cash without a bank loan. However, if you buy a $ 2 million commercial building worth $ 1 million, the annual income of $ 2 million will be about $ 100,000 annually. However, since 50% of the total purchase price is a bank loan, the aggregate bank loan payment for this year is $ 70,000, and if it is deducted from the income generated by the purchase real estate, about $ 30,000 a year remains as net income. That amounts to $ 2,500 a month.
Whether it is in a commercial building or an apartment, there is a slight difference, but it does not go far beyond the category shown in the previous calculation.
Anyone who wants to make such an investment will try to make a plan to make more money out of the cash they have and will compare and review it.
The above-mentioned cash-on-cash of $ 1 million in cash purchased by customers is equivalent to 5% per annum, and a cash investment of $ 1 million, The rate of return is 3% per annum.
Based on these calculations, retirees and those planning retirement in the future will be able to purchase cash for investment property in order to expect more cash revenues to provide the cash income needed to survive.
However, customers who are still working and have a normal income will not have to rely on real estate investments in such a cash source, so investing their cash in a highly efficient way.
As far as real estate investment is concerned, leverage means that investing in real estate means that investing in the larger real estate with less cash is an investment method that can increase investment efficiency. However, it should be borne in mind that the risk of investment may increase.
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