Submitted by Anonymous on Sat, 10/20/2007 - 03:17.
Greater Cash Flow, Greater Returns- Investing Across State Lines
Author: Richard Sorrentino
Investing Across State Lines is a popular practice in commercial real estate. Investors who venture outside their comfort zone find greater cash flow and greater returns by accessing an abundance of current regional data via the Internet, industry resources and advanced education from sucessful professional investors.
nvesting in high yield commercial markets are available to the investor seeking increased return from commercial real estate investments by investing across state lines.
New Markets
Dissatisfied Single Family Residence investors are now entering new commercial markets in search of better opportunities. Many commercial investors whose experience limited them to one geographic area are going out of state because of better opportunities in other markets. Markets such as Washington, California, the District of Columbia and New York have had prices peak and Capitalization (CAP) Rates for commercial real estate are very low (meaning the price of a property is disproportionately high in comparison to its net income). Therefore, there is a high barrier of entry for investors to get into commercial size properties and rates of return are low.
There are other markets where investors can buy commercial properties that have lower prices, higher CAP rates (lower price in comparison to net incomes) and better rates of return. Additionally, different markets may be in different market cycles, which can create excellent buying and/or selling opportunities.
Reasons to Invest Out of State
Investors may go out of state to invest because of laws, and taxes. Laws may be more favorable in another state and make it less expensive to invest and make a return. The same goes for tax savings.
Economic factors may also make it attractive to buy in different markets around the country. For instance, Texas, over the past couple of years, has experienced very strong job and population growth. In addition, the Texas legislature has passed laws to reduce property taxes. Economic and political factors in Texas have made it a great place to buy office space or apartment buildings.
When an investor learns how to invest across state lines successfully, you can identify opportunities in different markets as they emerge. You keep assets working effectively, as a result, and move into different market cycles when timing becomes advantageous.
Why Staying in Your Comfort Zone May Limit Return on Investment
An investor that invests solely in their regional comfort zone risks having to ride out changes in the local market. You may have to put up with lower returns and deal with negative economic factors for a considerable amount of time. Ultimately, you may miss out on opportunities for greater returns. Investing out of state gives flexibility to the investor, providing more options.
Once you have the big picture figured out you should have a good idea what types of investment strategies will help you to achieve your financial goals. This will enable you to pick the right investment markets and to plan your entry into a market where opportunities are present.
You can literally choose which market you want to invest in or the type of asset (retail, office, multi-family, industrial, etc) that you want to buy to fit your strategy. Before you begin investing, make sure that you have a clear understanding of your financial goals. This will help you to develop a clear investment strategy and long-term goals.
Investor Education Resource
Investor Tours University is a dedicated resource helping investors build wealth and achieve success of their definition. We offer state-of-the-art, commercial real estate investing education, tailored to meet the needs of investors with varied backgrounds and experience levels. Our faculty, consists of a network of national experts in legal, tax, investment strategy, property management, acquisition and sales professionals who practice what they teach investors: how to achieve generational wealth using commercial real estate.
Richard Sorrentino is an author, educator, and Executive Director of Education for Investor Tours University. His website is http://www.investortours.com (ITU) is a subsidiary of the Partnered Property Acquisitions Group, founded by Monte Lee-Wen CEO. Visit http://www.theppagroup.com/ We may be contacted at 512-651-0513. The PPA Group has purchased over $40 million in commercial real estate in Texas since the company relocated to Austin, in August, 2006 with a projected target of over $100 million in commercial real estate acquisitions in Texas alone, by the close of the forth quarter of 2007. ITU is the #1 educational resource for in depth commercial real estate investment education offering a proprietary investment system taught by Monte Lee-Wen, author and Founder of Investor Tours University.
Investor Tours University currently offers:
• Free weekly teleclasses
• Investment Education Seminars
• Investor Tours Events
• Investment Webinars
You are welcome to share this article, unedited, in it’s entirety with anyone. You may not remove this text. © 2007
Article Source: http://www.article99.com
Investing Across State Lines is a popular practice in commercial real estate. Investors who venture outside their comfort zone find greater cash flow and greater returns by accessing an abundance of current regional data via the Internet, industry resources and advanced education from sucessful professional investors.
nvesting in high yield commercial markets are available to the investor seeking increased return from commercial real estate investments by investing across state lines.
New Markets
Dissatisfied Single Family Residence investors are now entering new commercial markets in search of better opportunities. Many commercial investors whose experience limited them to one geographic area are going out of state because of better opportunities in other markets. Markets such as Washington, California, the District of Columbia and New York have had prices peak and Capitalization (CAP) Rates for commercial real estate are very low (meaning the price of a property is disproportionately high in comparison to its net income). Therefore, there is a high barrier of entry for investors to get into commercial size properties and rates of return are low.
There are other markets where investors can buy commercial properties that have lower prices, higher CAP rates (lower price in comparison to net incomes) and better rates of return. Additionally, different markets may be in different market cycles, which can create excellent buying and/or selling opportunities.
Reasons to Invest Out of State
Investors may go out of state to invest because of laws, and taxes. Laws may be more favorable in another state and make it less expensive to invest and make a return. The same goes for tax savings.
Economic factors may also make it attractive to buy in different markets around the country. For instance, Texas, over the past couple of years, has experienced very strong job and population growth. In addition, the Texas legislature has passed laws to reduce property taxes. Economic and political factors in Texas have made it a great place to buy office space or apartment buildings.
When an investor learns how to invest across state lines successfully, you can identify opportunities in different markets as they emerge. You keep assets working effectively, as a result, and move into different market cycles when timing becomes advantageous.
Why Staying in Your Comfort Zone May Limit Return on Investment
An investor that invests solely in their regional comfort zone risks having to ride out changes in the local market. You may have to put up with lower returns and deal with negative economic factors for a considerable amount of time. Ultimately, you may miss out on opportunities for greater returns. Investing out of state gives flexibility to the investor, providing more options.
Once you have the big picture figured out you should have a good idea what types of investment strategies will help you to achieve your financial goals. This will enable you to pick the right investment markets and to plan your entry into a market where opportunities are present.
You can literally choose which market you want to invest in or the type of asset (retail, office, multi-family, industrial, etc) that you want to buy to fit your strategy. Before you begin investing, make sure that you have a clear understanding of your financial goals. This will help you to develop a clear investment strategy and long-term goals.
Investor Education Resource
Investor Tours University is a dedicated resource helping investors build wealth and achieve success of their definition. We offer state-of-the-art, commercial real estate investing education, tailored to meet the needs of investors with varied backgrounds and experience levels. Our faculty, consists of a network of national experts in legal, tax, investment strategy, property management, acquisition and sales professionals who practice what they teach investors: how to achieve generational wealth using commercial real estate.
Richard Sorrentino is an author, educator, and Executive Director of Education for Investor Tours University. His website is http://www.investortours.com (ITU) is a subsidiary of the Partnered Property Acquisitions Group, founded by Monte Lee-Wen CEO. Visit http://www.theppagroup.com/ We may be contacted at 512-651-0513. The PPA Group has purchased over $40 million in commercial real estate in Texas since the company relocated to Austin, in August, 2006 with a projected target of over $100 million in commercial real estate acquisitions in Texas alone, by the close of the forth quarter of 2007. ITU is the #1 educational resource for in depth commercial real estate investment education offering a proprietary investment system taught by Monte Lee-Wen, author and Founder of Investor Tours University.
Investor Tours University currently offers:
• Free weekly teleclasses
• Investment Education Seminars
• Investor Tours Events
• Investment Webinars
You are welcome to share this article, unedited, in it’s entirety with anyone. You may not remove this text. © 2007
Article Source: http://www.article99.com
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