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A thorough understanding of the competitive market is critical for the success of every real estate venture. Our research and transaction professionals are on top of all the latest trends and market intelligence to look beyond the numbers to the bottom line. Along with our comprehensive market reports, our research team collects detailed transaction data, produces in-depth analyses and delivers compelling insight on the market.
What is an Accredited Investor
In its simplest form, an accredited investor is a person with income exceeding $200,000 in each of the two most recent years, or joint income with a spouse exceeding $300,000, or has an individual or joint net worth exceeding $1 million excluding their primary residence.
Real Estate is possibly the Best Asset Class to invest in.
Given the recent volatility in the stock market we thought it might be time to take a look at investing in Commercial Real Estate. Commercial real estate is one of the most dynamic investment classes in the world. Commercial real estate is the only major asset class that produces high yields, significant equity buildup, can be efﬁciently leveraged for large gains, has the security of a hard asset that you can see and touch (intrinsic value regardless of an income stream), and provides some of the best tax advantages.
Commercial Real Estate Produces Significantly More Income.
One of the biggest advantages of Commercial Real Estate is the high annual cash returns it produces. In fact, a commercial real estate income stream can produce three times the average stock dividend yield and four times the average bond yield. The chart below demonstrates the income each asset class produces based on a $1 million investment.
Magnify Your Equity Return Using Leverage
Real Estate also allows for magnified equity buildup on a shorter-term basis by using financing, which is illustrated below. If you were to purchase a $10 million asset all cash and sell the asset in the future at $11 million, you have made $1 million profit, a 10% return. However, if you were to purchase a $10 million asset utilizing only $2 million of your own money and financing the remaining (allowing the rental income to make the debt payments), then sell the asset, you have also made $1 million profit, however achieved a 50% return.
We’ve given you just two reasons commercial real estate might make sense to you but there are many more. If you would like more educational tools or are interested investing in a hard asset with great cash returns let us know.
Source: NAI Realvest
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PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PROFITS or RETURNS, investors should consult their investment advisors or tax specialist before making any investment decisions. Securities offered through WealthForge Securities, LLC. Member FINRA/SIPC