Buy Commercial Real Estate: One Of The Best Ways Today

I met with a very affluent international commercial real estate investor yesterday that owns about 28 hotels around the world. We were talking about a few of the projects that we are working on at the moment (HE LOVED the NUMBERS!!!) and he was very impressed with our tactic. What I found most interesting was his confession later in our conversation that he too used this same tactic to purchase his last nine hotels.

So here is a quick tip on the best way to buy commercial real estate right now!

* Buy a note that is in default: Any real player in the economy of the day has the opportunity to work with distressed first position note owners with non performing asset. TODAY you can negotiate very solid deals based on true fundamentals (CASH FLOW). YES, both traditional and private lenders are starting to open up and entertain discounted offers to help offset some of their book losses. The time to buy commercial real estate is now!

Let me give you some perspective...

One of my partners sold a hotel in the Orlando area about 15 years ago for $15M. The new owner who managed this asset was offered $150M for it about three years ago. Instead of cashing out, he took out a big loan (in the boom) to renovate the building and well... the rest is history. Another contact of ours just purchased the note in default for $5M. Not convinced?

This international investor shared with me that he just purchased a note in default for $1.8M on a building that, based on income, is worth $8.5M. Still not convinced?

One of the projects we are working on buying at the moment is a note in default for about $5M that is worth over $12M in today's market.

Here are your options:

1. You can get out there and make offers on non performing commercial assets. Negotiate your deals and partner with equity investors to take down these great opportunities.

2. You can join players that are doing that and become one of their equity partners. Many investors are taking their retirement accounts out of the stock market and putting their money to work in commercial cash flow real estate. I have several that are taking their extra funds out of their 1.25% Money Market Accounts or CD Accounts and putting their money to work right now.

3. You can do nothing and watch everyone else get wealthy over the next five to ten years.

I strongly urge you to go out there and make sound investment decisions. Buy commercial real estate based on income and you will enjoy the benefits of building long term wealth. I wish you the best in your ventures.



Mr. Melero is a principal in the Tampa, FL based HIS Real Estate Network, LLC, a residential real estate and commercial acquisitions and marketing firm where he spearheads income producing real estate projects and oversees the company's performance. He is a professional real estate investor, speaker, published author and one of the elite mentors of the Trump Institute. Through some of the nation's leading seminar companies he has sold over 250 residential wholesale properties. He is a dynamic and well-received presenter and has shared the platform with well-known real-estate trainers throughout the United States. Rick is also one of the Managing Members of the Real Deal Community, sponsored by HIS Real Estate Network, one of the fastest growing investor communities with over 20,000 active investors and counting. They have been featured in Forbes, Yahoo Finance, Los Angeles Times and Market Watch.