Ofir Ventura - How to Make High Return on Commercial Real Estate Investment: Experts' Perspective.
As a commercial real estate investor, you can increase your returns and pocket tax-free cash by using leverage and refinancing. This benefit is only one of the reasons why investing in commercial real estate often comes out on top when measured with other types of investing. Leverage is the application of borrowed funds to complete an investment transaction. The higher the percentage of borrowed money utilized to invest, the higher the leverage and, thus, the lower the amount of equity needed. Ofir Ventura , a successful commercial real estate investor, based in Las Vegas, gives examples of how leverage works for you: Magnify Your Gains in Price with Leverage Suppose you buy a $100,000 property. You borrow $800 and put $20 down. During the following five years, the CPI advanced by fifty percent. But, your property lagged behind the CPI by just increasing 25%. Your real wealth dropped? No, it grew. The $100.000 property is now worth $125,000, so your equity has increased by $45.0...