The Game of Real Estate Equity and Investment Part 2

Updated: Jul 2, 2021

As entrepreneurs prepare for revenue generating opportunities with the coming of the Bayou Classic in April of 2021, there are many strategic options for Shreveport business owners. With the landscape of the lack of revenue drivers in the city, we (entrepreneurs) seek opportunity when others only see disparity. Let’s dive into a few opportunities we have in the city regarding real estate. If you currently own an investment home or are interested in acquiring one, now is the time to prepare for Air B&B ownership and capitalize on Bayou Classic visitors coming to the city. Travelers will typically secure hotel accommodations, however because our city does not regularly host major events, hotel rooms will fill up quickly. Thereby, presenting the opportunity for local residents and real estate investors to structure themselves properly. With that being introduced, let’s look at how financing works.

Commercial lenders offer better incentives and terms than traditional banks. Therefore, commercial lenders have specific types of property uses that appeal to them. One type is Air B&B’s. Commercial lenders look at the value of the property and the longevity of an income producing investment. The question is, “can this property generate passive revenue?” If so, the lender looks at it as a viable investment on their part, if you (the borrower) should default on the loan. Remember, the commercial lender is taking a calculated risk by providing the funding.

Another featured investment property that commercial lenders are attracted to are duplexes, quadplexes and multi-unit apartments. Notice that all of these properties are, again, revenue generating properties that add significant value to a real estate investors portfolio and net worth. To build net worth as an investor, making purchases of properties with passive income is of utmost importance and should be the focus of a serious investor. Relating this to seizing the opportunities in Caddo Parish and the surrounding 70-mile radius, I’m hoping that you are now seeing the opportunities of entrepreneurship to position ourselves as investors in our own communities. This is a “CALL TO ACTION” to carpe diem (seize the moment)! Here’s a fun fact for you. Did you know that it is easier to purchase investment property than to purchase property for personal use? YES! Therefore, reframe from having your current mindset regarding the process of purchasing property. NOW, you’re entering into the arena of entrepreneurship, which requires an entrepreneur’s mindset. A mindset to learn how to properly structure ourselves financially to participate in the game of real estate equity and investments.

I’m reminded of a statement my parents would say, “buy as much land as you can because they’re not making anymore.” While this is true, the strategy my parents taught me wasn’t greatly beneficial to us holistically. Instead, what should have been taught was the real estate game of equity and investing. This game should be initiated under an LLC and structured to be separated from personal liability. Interestingly, I didn’t learn this while obtaining my MBA/PA, I actually learned this as I was growing my own business. For this purpose, a mindset shift is mandatory to maximize on any and all opportunities to build a solid real estate portfolio and to perpetually grow businesses. Additionally, there also must be a cultural awareness of the economic environment we’re in and a strategy to build with others to satisfy a common goal. If we are not culturally intelligent about our real estate investing activities, they may be discarded by systems already in place that challenge our plight to improve communities. This is, by no means indicating that our communities are mere victims, but instead addressing the climate we’re in when taking advantage of the opportunities our ancestors have provided us with through their sacrifice and continued guidance. Learning the systems that guide our very existence (credit and financing); which are also barriers of entry when providing for our communities; is a mandatory RIGHT NOW ASSIGNMENT. The days of saying, “I don’t know how… so I don’t do it”, should be over. We have more opportunities than ever before. If our ancestors were able to establish townships during the most challenging socioeconomic times, why are we struggling to purchase investment properties and improve our communities? I am presenting opportunities for entrepreneurs to learn two processes; 1. THE GAME OF BUSINESS CREDIT and 2. THE GAME OF REAL ESTATE EQUITY AND INVESTMENT. This FREE information I’m sharing is strategically placed in a 100-year-old black owned news publication for a reason. YOU ARE MY TARGET! YOU ARE WHO I WANT TO EMPOWER! However, you must read, learn, grow, and share in order to take full advantage of these professional recommendations.

11 views0 comments