Saturday, January 3, 2009

Cash Cows in the Big City

Cows in the city, is that possible? You bet ya, we’ve got Long Horn Steer, Herefords and Black Angus. All top of the line, all A-class, all the most expensive. There out there in the big city and ready to be bought, sold and leased.But you don’t want to pay top dollar for your cattle. Paying top dollar for anything in an economy like this makes it tough to turn a profit.Besides, you need a worker.You need to plow the fields and turn up fertile soil. You want to plant seeds that grow and generate a renewable resource.

You need an ox.Oxen are some of the hardest working cattle, heck they are some of the hardest workers in the animal kingdom! Okay, so why am I going on and on with the ‘cow’ analogy when you came here to read about commercial real estate? I’m doing it to illustrate a point.

Yes, you can go out and buy the best out there and yes you will probably make a little money. But, if you don’t have a lot of cash to invest and you want to maximize the income generated from your investment, in this economy you need a hard worker.

As we come out of any recession, the C-class office building is one of the first areas to receive the benefit from the upward rise. Many professionals who were laid off will start their own small businesses. They will need inexpensive office space to house their new venture.

The worker class of the office building space is the small office condo and older office buildings that have languished in the past. As a savvy investor you can purchase these buildings for a song and turn them into Cash Cows in no time.

B- and C-class office buildings are the working class of the office space market. They are the oxen if you will. Having these properties in your real estate portfolio will provide you with tremendous cash flows and give you the income you want from your real estate investments.

So stop and look at all the beautifully groomed and well bred herds and start looking for the lonely oxen out there ready to pull your cart! Find the one or two and you’ll have a cash cow that you can call a Cash Flow Monster.

For low- and no-money down strategies, contact me and I’ll show you how to add these Cash Cows to your real estate portfolio!

Michael Gross is the President of Dividend America Mortgage and has been in real estate for over 20 years. He has been a builder, a Realtor, an appraiser, and currently he is a lender and an active real estate investor. He uses all of his experience and knowledge to show individuals how to properly use a mortgage as a tool to help create greater wealth through real estate investing. For more information on residential and small commercial loans please call 770-350-7373 or email mgross@dividendamerica.com

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