Today, August 14th, is National Financial Awareness Day. Are you someone who has a bury-your-head-in-the-sand approach to personal finances, where you simply don’t want to know because of the anxiety it gives you? Are you someone who does so much research that you’re paralyzed with indecision and over-information? Maybe you’re someone who simply prefers to outsource all of your finances – let the accountant handle it. Or are you somewhere in between – you understand a little bit, but you could certainly be doing better?
Whatever your personal financial situation is, investing in commercial real estate is something that anyone can do – and that everyone SHOULD do. We interviewed some of our senior advisors here at Capstone Commercial to talk a little bit more about their commercial real estate investment and personal finance opinions.
What is your favorite way to invest in real estate?
Naomi Brown, CCIM (NB): Hands on!
Michael Kushner, CCIM (MK): My preferred method has evolved over time. Initially, I invested exclusively in multifamily properties and personally handled all of the aspects of property management. I eventually transitioned into other commercial real estate investment types, and have also done land development.
Ida McMurray, CCIM, SIOR (IM): I prefer to invest in hands-on real estate, handling most of the aspects myself.
How old were you when you started investing in real estate? What was your first investment?
NB: We bought our first house in 2008. Then that house became our first rental in 2011 when we wanted to move and the bottom had dropped out of the market. So, we became landlords – it was either that, or do a short sale. Fortunately, the market did recover, and we sold the house for what we paid for it in 2014. It was a hard but good lesson to learn.
MK: I made my first real estate investment when I was 25. I purchased a 4 unit apartment building.
IM: I won’t age myself, but I got started investing when I purchased a 3 unit apartment building in 2004.
How has real estate investing helped you to reach your personal finance goals?
NB: Real estate investing has helped to shelter my income from taxes, and has grown our net worth.
MK: Real estate investing has provided me with a steady cash flow, appreciation, tax benefits, and equity build-up.
IM: Real estate investing is an important component of my long-term plan for my finances – I approach it with a focus on the future, rather than immediate gains.
What is the #1 thing that you think someone should know before they begin investing in real estate?
NB: Make sure you educate yourself! And think outside the box.
MK: Do thorough due diligence – understanding the market, evaluating property values, assessing risks, analyzing potential returns, and knowing the legal and financial aspects involved. AND ENGAGE A COMMERCIAL REAL ESTATE BROKER!
IM: Before you start, call a trusted advisor for guidance (aka us!)
What would you say to someone who is hesitant to begin investing in real estate?
NB: Real estate is the best way to shelter from inflation and grow your wealth long-term.
MK: Real estate is just another asset class, like stocks, bonds, precious metals, etc.!
IM: The sooner you start, the better you’ll be – but it’s never too late to begin!
Ready to begin your commercial real estate investment journey to improve your personal finances? Our expert advisors have over 80 years of combined experience, and we’d love to pass our knowledge on to you. Contact us today to pick our brains!
