Hannah Hammond outlines how to turn $100,000 into $1 million in commercial real estate. Search LoopNet for debt-free properties held long-term, negotiate seller financing, then improve management and renovations to raise rents. Cash-out refinance to pull equity tax-free and repeat with the next property.
Chapters
If I had to turn $100K into $1 million again, the first thing I would do is go search for commercial real estate properties for sale on LoopNet. And I'd look for things that have been sitting for a long time, owners that have owned the asset for a long time, don't have any debt on them, and I would negotiate seller financing on that asset. I would make sure it's an asset that has room to add value. Step number 2 is I would increase the value. I put better management in place, I would renovate the building, and then I would raise the rents. Step number 3, I would do a cash-out refinance on that asset and pull out all of my equity plus my profits without having a taxable possible event because it is a loan and I'm keeping the asset. And then I would take those profits and roll them right into the next property.