Finding Profitable Commercial Properties Lake Forest CA

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Finding Profitable Commercial Properties

Author: David Lindahl

Since the goal of profitability is not really in any doubt, the real question that abounds is how to find a property that is profitable. There are always skeptics out there, many of whom will pose the following challenges:

• If a property is so profitable, why would someone be selling it?
• There must be a catch.
• There must be more to it than simply making money as that would just be too easy.

Skeptics aside, how do we actually determine profitability? This will be based upon several key factors:

• Monthly cash flow
• Equity/appreciation
• Leverage
• Depreciation
• Tax advantages

Provided the monthly cash flow for a property is positive, consider the other factors that additionally enhance profitability of the property as a business. Each year, the property will have more equity, due to the fact that tenants are paying off any loan you have. Most commercial properties are financed for 15-20 years, meaning that several years of ownership can actually increase the equity position with some significance.

Profitability can also come from leverage, through equity lines of credit, business lines of credit based upon the financial strength of the property, or reinvestment of cash flow proceeds into other investments. Consider too the tax write offs from depreciation, mortgage interest, and many other fixed expenses, and commercial property can be a hugely profitable business for you to consider.

About the Author:

David Lindahl, also known as the "Apartment King" has been successfully investing in single-family homes and apartments for the last 14 years and currently owns over 7,000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights, please go to http://www.davesoffer.com/ezine

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