Grow Wealth: Understanding Deal Flow

Are you looking to grow your wealth through commercial real estate investing? Rise Wealth is here to provide you with valuable insights and strategies to help you succeed in this lucrative industry.

Step 1

When it comes to investing in commercial real estate, conducting thorough market research is essential. Understanding the local market trends, vacancy rates, rental rates, and demographic data can help you make informed investment decisions.

Step 2

Working with experienced professionals such as property managers and brokers to find potential investment properties. They can provide valuable guidance throughout the investment process.

Step 3

Initial analysis of the property should include evaluating basic metrics such as CoC (cash on cash), Cap Rate, IRR (internal rate of return), NOI (net operating income). Identifying potential improvements or "value add" in order to increase the value of the property or finding inefficiencies in operations that can be streamlined to improve cash flow are key.

Step 4

Submit a competitive LOI (letter of intent) and enter due diligence. Due diligence is your opportunity to thoroughly inspect the property and run financial audits. We always recommend walking the property with a trusted general contractor.

Step 5

Financing and closing the deal! Secure funding with either a local bank or agency loans such as Fannie Mae or Freddie Mac. Fannie Mae is the Federal National Mortgage Association and Freddie Mac is the Federal Home Loan Mortgage Corporation. Once financing is in place you get a transfer of ownership but it does not end here.

Step 6

Asset management is crucial because this is when you get to implement your business plan and strategy for improving the value or performance of your property. The goal is to return your investors money with increasing equity along with regular cash payouts.

Rise Wealth is dedicated to helping you achieve your financial goals through strategic and informed investment decisions. Stay tuned for more tips and insights on how to succeed in the world of commercial real estate investing.