Commercial Property Advisors

Have Your Cake and Eat it Too

10.02.2020 - By Peter HarrisPlay

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Can you have your cake and eat it too with commercial real estate? It absolutely can be done if you have the 4 essential ingredients; increasing cashflow, building equity, the ability to do a cash-out refinance, and the use of that cash out refinance proceeds to invest in the next property. As you increase your cash flow, you also increase your Net Operating Income (NOI). Increasing your NOI, builds up your equity, which enables you convert some of that equity into cash through a "cash out refinance". Then, you can take that excess cash and use it to purchase your next property. The cash flowing property is what I call the delicious cake and using that cash flowing property to invest in a new deal is what I mean by eating it too!

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