This just might be the best
real estate investment ever!
When your stockbroker recommends a stock, you decide whether to
purchase shares. You may gain or you may lose on that particular purchase.
But whether the value of the stock rises or falls, each time you buy or sell, the
broker earns a commission.
So which is better, owning the stock or owning the brokerage?
The same can be applied to real estate. Instead of owning the property, what if you owned the brokerage? And not just any brokerage, but one that’s professionally managed, utilizing the most leading edge products, programs, services and systems in the industry?
Now you can because Compass Realty Systems offers investors the opportunity to own an actual Real Estate Brokerage Business while letting professionals manage it for them. Now you know why my headline states that this just might be the best real estate investment ever... because a Real Estate Brokerage Business earns a commission on every sale, regardless of whether property values are rising or falling.
Let’s take another approach.
Real estate agents typically recommend that investor clients purchase rental properties as a way to earn passive income, build wealth, and pay for college educations. It’s a common recommendation. (I often made the same recommendation to my clients).
But when you invest in rental properties, your profit is usually on paper until the day you sell. Until then, all you see are tax deductions for the negative cashflow you're likely to realize during the first few years.
By comparison, it may cost about the same to buy a complete, operating, 20-person real estate office as it would for just the down payment on a 30-unit apartment building. But instead of only paper profits, you can bank cash every month. Plus, the eventual sale of the real estate brokerage nets you even more.
Owning all or part of an income-producing real estate business is a great way to diversify your investments. In fact, owning a real estate brokerage during a market turndown may prove considerably less risky than owning rental properties.
So if you have capital to invest and would like to diversify your portfolio, take a lesson from the investment brokerage houses. And talk to us. We can get you started.
Click here to send me a confidential note of inquiry or call me directly at (314) 414-1111. I look forward to speaking with you!
Mark Palmero L’Boe
Chief Executive Officer, pro tem
Compass Realty Systems
Is Buying Rental Properties A Good Investment?
Is Buying A Real Estate Business A Better Investment?
by Mark Palmero L'Boe
People often ask me if buying rental property is a good investment, a way to pay for kid’s college, retirement, build wealth, etc. The answer is “yes” and “no.” It depends on several factors that include your risk tolerance, how much taxable income you earn, your experience (if any) with finding, choosing, and owning income properties, your own definition of passive income, your financial ability to deal with negative cash flow, and so on.
While owning real estate is often viewed as a “safe” investment, the risks and aggravations to landlords are many — especially if you are highly leveraged. That’s not to say it’s a bad deal, just that things can go wrong. But, there may be something safer, more passive, and more profitable. And one that takes less money and creditworthiness than committing to a substantial loan to buy an apartment building. If you are contemplating buying a real estate investment property — you should at least look at the idea of owning a real estate company. That’s right, a real estate company.
Owning a real estate office is a lot like having the best of both worlds. You make money whether real estate values are going up or down and you enjoy the benefits of a passive income stream in a moderate-risk investment.
Before now, it was difficult and almost unheard of for someone to invest in a real estate brokerage business. Historically this was the domain of insiders — former real estate agents or brokers turned business owners. Compass Realty Systems changes all that by offering investors a turn-key way to set up, recruit, train, own and operate a real estate business. And the profits will beat what you can earn owning rental properties, especially in a down market.
Buying a going real estate business is comparable in initial investment to buying a small apartment complex — but unlike an apartment complex whose major profit is realized only upon the sale of the building — owning a real estate office yields an income stream during ownership and again upon the sale of the asset. Our joint venture approach offers the investor a steady income stream that we believe is less risky and more profitable than owning rental properties.
As our network of TREBB offices grows, we get closer to our ultimate goal which is to sell the entire chain under our Unified Exit Plan for a windfall profit of $60M or more within 8 years. Our goal is to repeat the accomplishment of a local chain of 30 real estate offices in St. Louis, Missouri that sold for more than $60 Million dollars ($2M each) in late 2001.
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