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  Thursday, March 11, 2010

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The OurGulfCoast
Team

850-934-0049

































1101 Gulf Breeze Pkwy

Ste 109

Gulf Breeze, FL 32561

  Investing in Real Estate

Invest in Pensacola Commercial Real Estate

You see, in order to get the serious deals that come to wealthy investors, you need to have the cash or equity to get into the lucrative, large investment properties. I'm talking about multi-million dollar apartment complexes, or other commercial properties such as office buildings, retail centers, stand alone commercial buildings, or even portfolios of distressed single family homes.

Our real estate investment groups allow several individuals up to many investors to join together and become one of these "big" investors capable of profiting from a large commercial real estate investment. Here are the advantages:

1. Ability to buy large commercial properties that can have very attractive cash flows and return on investment (ROI) capability. Since there are fewer buyers able to purchase these properties, they can frequently be purchased at more attractive prices. You are typically insulated from competing with inexperienced buyers willing to pay more because they are emotionally attached to the property or transaction.

2. Can be a completely hands off investment. We try to make it like owning a stock for you. Our local, experienced real estate team finds the properties, closes the transactions, and manages the portfolio on behalf of the investment participants. Each participant makes up their own decision to proceed based on the results of the due diligence and investment analysis that I conduct.

3. Great investment results compared to other types of investments. We typically steer clear of risky properties. Of course, EVERY investment has some element of risk. By intelligently leveraging the money, selecting the proper properties, conducting sound due diligence, and employing expert management of the portfolio, handsome returns can be had for much less risk than shares of a company's stock.

4. TAXES! Unlike stocks, you can LEGALLY defer 100% of your capital gains. You can also benefit from depreciation.

5. You don't have to do the accounting or bookkeeping. We do it for you.

6. We find the investments for you.

7. You get all of the equity appreciating benefits that individual investors get without the hassels.

8. You get a monthly payment.

What type of investments do we do?

Although, I'm open to look at any real estate property across the country, I'm an expert in commercial properties in the Pensacola, Florida, area. I hold an active Florida real estate broker license and have considerable experience in purchasing, selling, and managing real estate. I consider myself a specialist in multi-family (apartment) and office properties. I've personally owned and/or managed thousands of these units.

If you don't know me, my background and work ethic stems from being a nuclear engineer and an officer with the United State Navy Submarine Force. So I'm very analytical - some might call me a geek. I also feel the need to engage in decision making. I prefer a hands on approach to property acquisition and management; therefore, my (our) investments will most likely be close to the Pensacola, Florida area.

My "bread and butter" is multi-family properties. These properties, year after year, outperform those in other commercial and residential sectors and typically fair better during periods of economic downturns. Vacancies also have less of an impact. In a single family home, when the house is vacant, revenue drops to zero. In a four-plex, a vacancy results in only a 25% reduction in revenue. Leasing vacant apartment units is also easier than finding a large commercial tenant in a strip mall. Again, these are generalizations. All types of properties can be good investments. But remember: YOU MAKE YOUR MONEY WHEN YOU BUY, NOT WHEN YOU SELL!!! You must NEVER overpay for a property.

We also invest in Tax Lien Certificates and Tax Deed Sales. Click here to see how to really kick your real estate investing into overdrive!

What to know more? Contact me to discuss investing in real estate.

Here's a typical commercial real estate investment by our group:

Purchase price: $3,000,000
Down payment (investment): $750,000
Lender financing: $2,250,000
Monthly Payment: $15,477 or $185,724 per year
Revenue from property: $500,000
Expenses: $190,000
Net Income: $310,000

Cash Flow: $124,276 ($310,000 income - $185,724 payments)
Cash Return on Investment (ROI): 16.6% ($124,276 / $750,000)

Principal reduction (paid by tenants): $5,165
Appreciation 2%: $60,000
Operating Cash flow: $124,276

Total Return: $189,441 or 25.3%

A note about this investment example:
1. This is a 25% down mortgage. Not a risky high leverage loan.
2. This is not a short sale or foreclosure property. Returns from distressed properties can be expected to be considerably higher. Let's say we paid 75% of market value through a foreclosure, then our total return would be increased to around $1,189,441 or 158%!!!

Are you a little more interested in Pensacola short sales and foreclosures now? Contact me.

See our analysis for investing in tax lien certificates and tax deeds. Our investment group is forming now.

My money and interests will be right alongside yours on these investments. Be wary of other Pensacola real estate agents out there proclaiming to be investment and foreclosure experts. Are they putting their money where their mouths are?

Email me and I will be in touch. I'll be happy to discuss our current deals and our immediate target transactions.