Commercial Real Estate Investing From A-Z 300 Ways to Buy, Sell or Exchange Real Estate
In his first podcast interview ever, Robert Steele, author of 300 Ways to Buy, Sell or Exchange Real Estate, shares some of his top tips for buying, selling and exchanging commercial real estate.
You can read this entire interview here: https://montecarlorei.com/300-ways-to-buy-sell-or-exchange-real-estate/
Let's go over the first two strategies of your book, which you mention are the most important ones to get
The first one is called "Unpriced". The pricing is only in the eyes of the beholder. I encourage people to list their property unpriced - any price agreeable to the seller. They can give a range, $1,000,000 - $1,250,000 or $750,000 - $1,500,000. It's a range, perhaps, but the basic thing is unpriced. The person owning the real estate is trying to accomplish something. Now, if it's cashflow, you want a return of some sort, how much do you want? What is the target that you need to accomplish? Now, when they get into numbers, they get into cap rate sheets and things like that. In a pure exchanging, the cap rates go away. And it's what the person is trying to accomplish.
I'll take you to number two in the book, which is called Creation of Wealth. You have a home, you have equity, and you'd like to buy another house, let's say, to rent it. So you have choices that you either have the cash in the bank or you could refinance your house or you could borrow a second on your house. The second would give you cash and you could go buy another house with it, or a duplex. By the same token, you could create a second on the house. That's the creation of wealth. Very simply, you could put a note in a trust deed, or computer and type out a note for fifty thousand dollars secured by a trust deed on your house in which you would trade that trust deed to somebody else that had another house that would take your trust deed so you could use a trust deed that you created without using any cash. Simply it's a piece of paper secured by the equity in your home. It's recorded against your title. It's a piece of paper and the piece of paper says I'll make certain payments on it at a certain interest rate. What you're doing is you're using part of your equity in order to buy another property, which you're not going through a bank, you're creating it yourself.
In this economy, what are some of the strategies that you recommend us keeping in mind?
I'd keep in mind the crypto currency, you could have a tremendous amount of wealth tied up in that cryptocurrency. If you go out of that crypto currency, you're going to be taxed. But if you deal with people in the exchange field that are knowledgeable in exchange rules, they can help you because they can take a million dollars worth of your cryptocurrency and then you don't go out of title. You keep it because that's the goose laying the golden eggs. You want to keep that. You can use that as security to buy some real estate. A knowledgeable broker could say, we'll take a million dollars worth of your cryptocurrency, use it as security and wrap it in what's called a blanket mortgage over the crypto currency and the real estate. So you're able to use it as though it's a million dollar down payment without going out of title. Now, the person on the other side has the security of that million dollars. You have to perform on your payments and your obligations, or you would lose it. The currency could be used as the source of security for your down payment into to three or four million dollars worth of real estate without going out of title.
Robert Steele
(760) 522-5362
itsinfinite123@gmail.com
https://www.amazon.com/Steele-Ways-Sell-Exchange-Estate/dp/098951904X