Commercial Real Estate Myths EXPOSED #3: 4 Ways to Get CASH Without Selling Your Property!

  Commercial real estate doesn’t offer any liquidity. If I need the money for emergency, I can’t do anything. Let’s bust this myth.

Hey everybody. Joseph Gozlan with Eureka Business Group, your retail navigator for the Dallas Fort Worth market, and today we are busting commercial real estate myths.

Today’s myth is about liquidity. Everybody thinks that commercial real estate is so illiquid I can never get my money out of it unless I sell the property. That will take me 6 months, 10 months, a year, and if I have an emergency, my money is stuck. Well, while it’s true that commercial real estate is not something I can just send a request to my.

Stock brokers sell those stocks and I have cash in my hand. Commercial real estate offers enough opportunity to pull money out of the property that does not involve selling the business. Option number 1 is refinance. If I need the money within 60 days, 45 days, sometimes even 30 days, I can always refinance the property, assuming that I have equity in the property and within 30 days to 45 days, I will have that money in my hand to use for whatever I need moving forward. This still does not include losing my asset, which you would if you sold your stocks, and it also is a non-taxable event because if you sell your stocks, capital gain tax is gonna be applied to your gains. So that’s option number 1. Option number 2, I can go to my bank and ask for a business loan with the property as a collateral, and usually they’ll give me a business loan pretty fast within 20 to 30 days, and I didn’t have to do anything.

Once again, non-taxable event because it’s a loan.

Option number 3, I can bring an investor on board that will be a jv. He will get a piece of the returns from the property and returns. I get cash right now for the value, and I get my emergency funds that I needed without losing the asset.

Option number 4, if you can use the real estate income to offset the emergency need in payments instead of one lump sum. Now you have another option on the table.

To wrap it up, we had 4 different options where you can use your commercial real estate as an option to fund your emergency fund’s needs.

Yes, it’s not as liquid as selling stocks, but also the alternative is losing a lot of money, losing assets, paying taxes. So I’d rather try to find a creative way to leverage my commercial real estate rather than sell a stock portfolio. That’s it for today. My name is Joseph Gozlan with Eureka Business Group, your retail navigator for the Dallas for Worth market.

If you’re interested in getting the PDF that holds all seven myths that we’re gonna bust in this series, just click on the link in the description. That will take you to our website where you can download the full PDF.

That’s all for today. We’ll see you at the next myth busting video.