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How to Make High Return on Commercial Real Estate Investment.

Leverage is the application of borrowed funds to complete an investment transaction. The higher the percentage of borrowed money utilized to invest, the higher the leverage and, thus, the lower the amount of equity needed.<br>Ofir Ventura, a successful commercial real estate investor, based in Las Vegas, gives examples of how leverage works for you.<br>https://ofirventuralasvegas.blogspot.com/2022/12/ofir-ventura-how-to-make-high-return-on.html

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How to Make High Return on Commercial Real Estate Investment.

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  1. How to Make High Return on Commercial Real Estate Investment: Experts' Perspective Ofir Ventura

  2. As a commercial real estate investor, you can increase your returns and pocket tax-free cash by using leverage and refinancing. Leverage is the application of borrowed funds to complete an investment transaction. The higher the percentage of borrowed money utilized to invest, the higher the leverage and, thus, the lower the amount of equity needed.

  3. Magnify Your Gains in Price with Leverage Suppose you buy a $100,000 property. You borrow $800 and put $20 down. During the following five years, the CPI advanced by fifty percent. But, your property lagged behind the CPI by just increasing 25%. Your real wealth dropped? No, it grew. The $100.000 property is now worth $125,000, so your equity has increased by $45.000. You have more than doubled your fund when inflation has just risen your $20,000 to $30,000.Commercial real estate investing builds wealth as it grows acorns into free and clear properties worth many times the original amount of cash supported.

  4. Magnify Returns from Cash Flows with Leverage Conventionally, investors do not just enlarge their equity gains from leverage; also, they expand their rates of return from cash flows of 7.5 percent without financing. However, if you finance $800.000 of that $1,000.000 procurement value at, say, three decades, 5.75% interest, you invest only $200.000 in cash. Your income equals $75,000, and your yearly loan payment will total $56.000.

  5. Refinance to Pocket Cash without Paying Taxes This happens when a commercial real estate investor replaces their current financing with new financing. For instance, after ten years, your $1,000,000 property is now $1, 500,000. You have paid down your mortgage balance to $650,000. Your equity has increased from $200,000 to $850,000. You get a new 80% loan-to-value ratio mortgage of $1,200,000. But, Ofir Ventura recommends that you not spend that fund and reinvest it. Buy another property.

  6. THANKS FOR WATCHING

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