January 2010

Welcome to this month's newsletter

Each month I feature a different real estate investment topic. The purpose is to educate readers on ways that real estate is part of an overall wealth building financial plan - for those new to the game and/or for the seasoned investor. This months topic is about defining the different types of commercial real estate.

To Your Successful Investing!

Quote of the Month

"If you aim at nothing, more than likely you’ll hit it"

- Laverne Hart

About Steven Peck

Steven Peck is a commercial real estate broker. His area of specialization is real estate investments. He has been extensively involved in real estate investing for the past 20 years, personally and professionally. He has purchased and managed various real estate investments - including residential, commercial, and farm properties.

408-307-9785 | speck@yournext1031.com | www.cresmartguys.com | My Business Directory

Why Own Real Estate Investments?

Today, wealth planning and investing stands critical to your health, wealth, and peace of mind for your future. Real estate investments can be a valuable addition to your portfolio mixed with your stock market securities.

Here are many reasons why people own real estate investments:

1. Build wealth part time while keeping your full time job.

2. Protection from stock market volatility.

3. Prepare for retirement with a steady cash flow stream from
investment properties.

4. Save for children's college education expenses.

5. Build wealth through property value appreciation and rental income.

6. Use of leverage to maximize return on real estate investment.

7. Create multiple income streams.

Convincing evidence confirms that during the next 20 years, people who own single-family homes, duplexes, 4-plexes, and small apartment buildings will build wealth, and a profit-generating future, that they can count on. Savvy real estate investors will produce profits that will build in these six ways:

1. Dependable and growing flow of income (rent increases)

2. Property value increases (appreciation)

3. Mortgage payoff (amortization)

4. Value creation (property management)

5. Instant gain (equity from bargain purchase)

6. Government benefits (tax benefits, tax deductions, rent vouchers, etc.)

Although short-run economic downturns may jack up vacancies and depress rents, rent levels will go up over time because future demand will increase faster than future supply.Here are three reasons why:

• Population growth - during the next 20 years, US population will grow by 50 million from 280 million people to 330 million people.

• Household growth - to house the population increase would require a net gain of 20 to 25 million households.

• Incomes - the long term outlook for US productivity looks bright, and will add to household buyer power.

With pension plans, stock market volatility, social security, and lifetime jobs all engulfed in a fog of uncertainty, smart real estate investment for the long term will deliver a profit generating future.

Real Estate Investment Book List

1.Perpetual Income: How-to Generate Cash Flow from Low-End House Investments

- by Bryan Wittenmyer

Investing in Real Estate, 5th Edition

-by Paul McGreevy & Gary W. Eldred