Terry Hale wants to show you how you can land commercial real estate deals and achieve maximum profits. He believes you can build up passive income with CRE without having to deal with all the headaches of buying regular homes because of how different the commercial real estate space is. He says that in CRE you can manipulate the numbers, get cash flow at closing, maximize your upside, stabilize the property, capitalize on depreciation, all while enjoying passive income. But let’s be real, can the average person really do this?
Mr. Hale really believes in it. He has a couple different approaches. The first approach is his long term profit formula. You go out and find a deal, negotiate it down to the lowest price, buy it when it’s at its worst condition, get tenants back in, raise the rent, and move forward. Next you’ll just hold it for tax advantages and cash flow while you wait for the right day to sell it for a huge pay off. On the other hand, you could use his quick profit formula which is finding a deal, negotiate it, find a buyer, assign the contract, and flip it for a 6-7 figures. Ultimately you’re wholesaling commercial buildings.
Overall, it comes down to your ability to turn down the wrong deals and quickly snatch up the right ones. So what kind of deals does Terry and his team pass on? Deals that require all the cash up front or if they won’t come down on price. No discount, no deal according to Terry. Not to mention the people who want to price in the “future value” in the sale. Also Terry Hale ignores all deals where there’s no seller financing or creative structure. It doesn’t take much brain power to then figure out that the good deals are anything opposite of what’s listed above. You pretty much just want to find motivated sellers who want to work a deal on your terms that put you in an instant equity position.
“We wanna buy these deals in as-is condition,” Terry explains. “We don’t wanna buy on hope or speculation or what we think the future value might be. So if we’re buying as-is, we’re dealing with motivated sellers that get creative. Right? They love to get creative because they understand that these properties sit in the marketplace and brokers don’t like to take them on because people are only making lowball offers. And remember, brokers only get paid on commission. So why take on these distressed assets?”
“You don’t wanna get into properties that are risky,” Terry adds. “We wanna get into properties that can withstand a cyclical environment. Residential real estate goes up and down depending on the economy. But if we’re working with recessionary-proof properties, like apartments, we’re always going to be rock solid in the investment. People lose their homes, what do they transition to? Affordable housing, which is apartments. Multifamily. And when people have a bunch of stuff and they downsize, self storage is another great option.”
“And of course, there’s senior living, assisted living, ambulatory care—all of these sectors in the senior housing market are recessionary-proof properties because people get elderly and they need to be placed in these situations. And then lastly is mobile home parks. All of the above are deals you wanna look at. But again, the common denominator, we wanna look for motivated folks who have to sell, not just want to sell. So maybe they’re behind on their taxes. Lack of income. Rehab needed. Behind on payments. This is who you wanna be targeting.”
The sweet part about what Terry Hale claims is that to succeed in this space you don’t need your own capital or credit. You also don’t need to manage the properties yourself. You hire that out (wait a minute…what about the no capital thing?). Anyway, Terry says you want to just focus on being the CRE acquisition specialist. He’ll help you out too. Just book a call with him and his team to figure out what that mentorship would look like for you and how much it would cost. I’ll say this much though, after I sat through his presentation…I came to the conclusion that commercial real estate is just too complicated for someone like me.