Buy The Right Property

I've been reading "Creating Wealth" by Robert Allen. It is a great read for anyone in need of a real estate investment blue print. The idea is that you purchase properties and rent them to help pay your expenses, then sell the properties off over the course of the following 10-15 years, earning yourself a handsome profit and some financial freedom.

Nothing new here; no magic bean or secret formula for success. I am viewing it more as a positive affirmation of the course I have chosen in life. I too believe that real estate is a fantastic investment vehicle because it offers tax benefits that no other investments can. In fact, I agree with most everything Mr. Allen has to say and the ideas he has to share. I just differ in one area. His main thesis is that people should stick to single family homes and leave the commercial properties to others. I, on the other hand, am a huge fan of commercial properties and have a majority of my real estate holdings in them.

I always think of the game Monopoly. Remember how you buy houses and once you reach 4 houses, you get to trade up for a hotel? I try to do the same thing in real life. I first purchased a 3 bed 2 bath single family home. I improved it and rented it out for the next 3 years. I was lucky enough to be in an area that appreciated quickly and made enough profit to purchase a nine unit apartment building. I went from having $1,500 a month in total rents to over $5,000 WITH JUST ONE PURCHASE!!

All property ownership comes with maintenance. Whether you own 20 single family homes or one 20 unit apartment, you will have to pay for the upkeep of the property. After owning numerous single family homes and having to travel all over for simple things like mowing the lawn and, being from a cold weather state, shoveling snow, I have found that having one larger property to deal with is much easier. One lawn to mow, one driveway to shovel.

Many people are scared of larger properties. If you do your due diligence and inspect the property with a fine tooth comb, you will more often than not come out ahead. Be sure to inspect EACH UNIT completely. I use the following checklist.

Plumbing
Shower heads and faucets work with good water pressure
Sinks and bath/shower have no problems with drainage
Toilet has no leaks and is in good working condition

Electric
Outlets
Living Room
Bedroom
Kitchen
Bathroom
Hallways
Light Fixtures
Living Room
Bedroom
Kitchen
Bathroom
Hallways

Gas Ranges in good working condition

Common Areas of Building

Boiler
Water Heater
Electrical Outlets
Light Fixtures Inside/Out
Washing Machine/Dryer
Roof
Windows

Once you have a good understanding of the condition of the building, you will be able to make a wise decision and purchase a cash cow that will earn you income for years to come. Buy the right property, build a strong portfolio and watch your net worth increase.

Happiness at Work

On the plane ride back from New York, I had the pleasure of being seated next to a student from the University of Minnesota. He was involved in a student organization that promotes awareness of the situation in Tibet and had the unique opportunity to meet with the Dali Lama.

He was awarded the chance to ask one question of his spiritual leader and I could feel his happiness and excitement when recalling his memory. He told me about how the Dali Lama was to be awarded the Congressional Gold Medal, which is an extremely high honor to have earned. He spoke, in glowing terms, about the hard work and dedication that the Dali Lama put forth in all his efforts. The young man spoke about his own ambitions in life and how focused he was on his goals after having met such a spiritual figure and wise man.

I was a bit taken aback by this boys openness and the lack of cynicism he had. It was very refreshing. During our conversation, he told me about the book "The Art of Happiness at Work." I immediately picked it up when I got back to Minnesota and it is a great read. I would recommend it to anyone in the fast paced world of business.

The Dali Lama has a very straight forward view on life and how to obtain happiness. His main point is that you are unable to control everything that happens around you, only how you react to these things. I think that is a pertinent lesson for all of us, especially when something isn't working out great at work. We can't make other people return phone calls or get files completed as quick as we would like. We can't force a seller to accept our terms and can't expect a buyer to move at our pace, but we can help by not letting these negative things creep into the other aspects of our life. Remember, no matter how bad you think things are right now, someone else is having a worse go of it than you. Focus on the things you can directly affect and work to move towards your goals.

Have a prosperous day and a wealthy week!!

MMG in New York!!

On Monday, MMG attended the REBNY (Real Estate Board of New York) finance event and had the opportunity to listen to some of the top finance minds in the world speak about the current market conditions in commercial finance and what they believe the near future will bring.

It was a very informative seminar and provided MMG with insight and knowledge that will help out clients close their deals in a timely fashion.

We pride ourselves on being ahead of the curve and providing our clients with the most recent industry news, allowing you to make informed decisions on all your commercial finance transactions. We do the due diligence for you, ensuring you a quick and easy purchase or refi.

We also had the opportunity to sit down with our lenders and gain an understanding of what it takes to close deals in this down time. By attending the REBNY meeting and developing close relationships with our lenders, MMG is able to provide you with "insider" information on the commercial finance world and help you to close your deal when others leave you hanging at the closing table.

Keep close tabs as I will be posting blogs on what you can expect over the next year in the commercial finance world.