Thursday, January 3, 2013

Net Leased CRE Cap Rates Paying Extremely Higher Returns Compared to Bank Interest Rates!

I have known this for a while. But, I wanted to wait to write about this until after the Fiscal Cliff! :-)
(Sorry. My attempt at humor.)

For more than three years now, I have watched -- with despair -- as Bank Savings, etc Interest Rates have fallen to a present Interest Rate of: 0.01%.

That is correct. 0.01%. This is no where close enough to even live off the interest -- IF you have a sizable amount of money laying around.

And, as Proof, my own savings account -- which I use to put aside some "petty cash" in case of an emergency, IF I need it, is earning a grand total interest of that exact rate of 0.01%.

Now, yes this is FDIC insured because it is below the $250,000 max insured amount. BUT, if it was more, it would NOT be earning enough for me to keep it anywhere near a bank. And, since it would earn me more money or Return On Investment (ROI) with a rental house, that is where I should invest it.

But, for you who are in the higher earning amount bracket, acquiring a CRE Net Leased Investment property could earn you +/-7%!  Doesn't this make more sense. And, IF your NET Leased Tenant is a National Credit Company, that makes it even more attractive.

So, I do know even fools know that 7% this is a better ROI than putting the money in a bank at a 0.01% interest. AND, it is even better than putting any money into stocks or even Mutual Funds -- that I have currently looked at.

So, IF you are interested in earning more $$$s at a Cap Rate that pays better than a bank, please give me a call; or, just send me an email.  And, i will gladly help you select one of the CRE Net Leased properties that are within your acquisition price range and/or criteria.

For more Information about any Las Vegas Commercial Investment Real Estate Property, contact David Howes at: davidATdavidhowesDOTnet OR 702-501-9388!

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