CT REIA and Terry Hale presents: Recession-Proof Income with Commercial Real Estate
July 19 – 5:30 to 9:00 PM
Crowne Plaza Hotel. 100 Berlin Road. Cromwell, CT
FREE for CTREIA and AOACT members | $30 for guests



Register for this event


Come celebrate the 7th anniversary of CT REIA: We will be celebrating with New Benefits and Raffle Prizes


What You Will Learn
What is Going On In Your Current Market Today? We all know the Residential market is cyclical. It goes up and goes down. Right now is the best time to get involved and make some real money. When the residential market is at its all-time low, Commercial is red hot.
A lot of people are asking “How is The Residential Crash hitting Commercial?” The mortgage meltdown affects certain aspects of commercial real estate, but not all… some properties are recession-proof. So what types of Commercial properties are recession-proof? Here they are…

  • Apartments – It’s natural to gravitate towards multi family Apartments when you first start out in commercial real estate. It’s a concept everyone understands: “houses in a box.” When people lose their homes and they need a place to live, the next place they go to is an apartment.
  • Self-Storage – When people lose their homes, they transition into apartments. If you’ve ever lived in an apartment, you know the closet space is limited and the storage space is even less.
  • Senior Living Facilities – These are a lot like assisted living but much easier to manage. When people get older, they either end up in assisted living or they look to have a relaxed lifestyle and choose to occupy space in a senior living facility. This is a fifty five plus senior living facility with active seniors who want the done-for-you lifestyle.
  • Mobile Home Parks – I call this one the least sexy of all the property types. Most people envision mobile home parks to be in bad areas with management stealing from you. Well you don’t need to worry about them skipping out and not paying the rent because you know where they live. Who lives in a mobile home park? People who lose their homes or people who can’t afford apartment living. It costs much less than a home and less than an apartment. For that reason alone, it’s classified as a recession-proof commercial property.
  • Why is Commercial Real Estate the all-time wealth-builder? – The reason is simple… cash- flowing properties. There are four reasons to keep cash-flowing properties and each one has its own separate benefit.* Appreciation
    * Depreciation
    * Cash Out
    * Cash Flow Most investors purchase commercial properties for two main reasons: cash flow and appreciation. Unlike residential property, commercial property goes up in value much quicker. When the rents increase the NOI (net operating income), the value goes through the roof.
    I never buy retail – I buy wholesale. Investors who buy with good old conventional wisdom put down huge deposits and personally sign for loans. I don’t do this and don’t recommend this.
  • Appreciation – The next is depreciation: good old “Uncle Sam” will allow you to write off a portion of the property each year. This is a writeoff for wear and tear.
  • Cash out – Here is the wealth explosion for you. You can take out all the equity in the property and put it into “HNB” Hip National Bank. This means you pocket all the cash and you don’t pay taxes on that money until you sell the property. When you sell the property, you can do a 1031 tax deferred exchange and roll it into another asset without having to pay capital gains is the wealth-builder that I’ve been talking about. When you have seasoned a property’s income, you can approach a lender for a Cash Out refinance. Seasoning a property usually requires you to fill vacancies on a commercial property and keep it at market occupancy for just 180 days.