My Real Estate Investing Strategy Revealed
Imagine written on an ordinary cocktail napkin created late one evening with an investor is the commercial real estate investing strategy (I affectionately call my "Algo") that has made me and my investors wealth. I want to share what was on that napkin with you today...
My name is Dan Genzel and I want to discover my commercial real estate investing model...the exact same strategy that has allowed me to acquire and develop almost $100,000,000 of commercial real estate in a relatively short period of time.
It's a simple model...in fact it's so simple I fit it on a napkin!
The premise of my Algo is buying commercial real estate below intrinsic value and investing the human and financial capital needed to turn the property around and maximizing the Net Operating income the property produces which FORCES appreciation and builds massive equity in the property which creates wealth for me and my capital partners. After the value is increased one of two things happens: (1) a re-finance as long as the cash flow supports the new debt where as much capital as possible is returned to the investors lowering our basis in the investment; (2) when I determine that there is nothing but risk on the horizon and I have maximized value the property is sold to a different “type” of investor and the equity is unlocked. Many times (30 actually) we turn around an do it again!
How it works for my capital partners (who I am always seeking more of), at the end of the day, I offer them equity stakes in the entity that will own the property (each property has it’s own LLC) where I pay them a dividend like annual return while I go to work to increase the value of the property i.e. they are getting paid very well to wait to make much more money at a future date where the equity is unlocked one way or another.
There is no other business where I can gather a bunch of people i.e. tenants in my properties and basically force them (via the written Leases) to in effect pay all my property expenses (via the Rent they pay every month) including amortizing mortgage and then hand over the cash flow that’s left over to do with as my investors and I please. This is all while then pay off my building in 20 years because of the amortizing mortgage. I just don't know many investments like this, if any - believe me I have searched.
You've probably heard about the income streams and wealth commercial real estate can provide and want to learn more. That's the beauty of commercial real estate is…it works no matter where you are in life because. Want to DIVERSIFY assets from your “Main Income Generator” while you are in your 30's and 40's - no problem. Want to create fixed income when you slow down and retire either part time or full time - got you covered – commercial real estate will continue to pay you no matter where you are in the world.
You probably don't know where to start...watch my video and if you think commercial real estate resonates with you, let’s have a conversation.