Owner/User Investment Model
Encon Commercial has tailored an investment strategy for you as a business owner based on SBA lending incentives and the historically strong commercial market in the Unites States. The U.S. allows many forms of real estate investments, which fosters sustainable wealth for owners, both through income and property appreciation. The most commonly known form of real estate investment is ownership of residential properties. In essence, home owners pay rent to themselves through a mortgage payment, and at the same time enjoy potential appreciation in property values.
Another form of real estate investment is commercial properties with income that generates steady wealth accumulation. This option is available through direct participation in the commercial sector of the U.S. economy – the strongest, most stable economy in the world. We are talking about an investment strategy in commercial real estate, and specifically an industrial property that you would otherwise lease. Most likely, you already operate your company in this type of industrial property and if there were a chance to own, you may consider purchasing.
We use the following three principles to locate an industrial investment for you:
1) Strong existing demand for quality warehousing in Greater Los Angeles.
This investment potential is based on the macro and micro need for quality warehousing in Los Angeles that matches the long-term economic development trends of the US.
2) Our ability to identify properties that have a functional life and show signs of appreciation.
This is a proven model that converts your company from leasing space at market rates to owning a state-of-the-art distribution facility that aligns with your company’s long-term growth with potential for tenants to pay rent and help you cover your mortgage.
3) Property management by Encon Commercial.
You will develop a long-term business relationship with our industrial real estate professionals who understand and excel at leasing industrial space, dealing with tenants and protecting the value of your investment.
Through the process of evaluating a suitable industrial building for your company, you will become intimately familiar with all the important details that make up a quality, functional and economically sound investment.
We firmly believe that the above goals are achievable and will match your company’s fundamental growth and financial strength, as well as provide you with a long-term commercial investment opportunity. Our real estate professional team has identified this method as one of the most successful means of expansion for your business while acting as a landlord at the same time
There are three growth phases to this type of industrial investment strategy:
Phase I (Quick Growth) represents a newer company that is still developing its sales volume. Instead of purchasing commercial real estate, we recommend leasing a distribution warehouse space that allows for flexibility and growth.
Phase II (Plateaued Growth) describes an established company with a steady sales volume that is ready to purchase a single unit / free-standing warehouse facility for its own use. This stage is a 3-5 year commitment to a functional warehouse that will appreciate with the market and create a gain achieved or sale that will be transferred to the purchase of a multi-tenant industrial park.
AND THE GOAL
Phase III (Purchase Multi-Tenant Facility Owner / User) characterizes by owner/investor having established and steady sales volume and owns a free standing building which can be sold. The plan is to trade up to an industrial, multi-tenant building or to purchase a parcel of land that allows construction of a multi-tenant industrial park. This multi-tenant park is the income-producing property that our owner/investor will retain for long-term cash flow generation and the ultimate goal in expansion and wealth creation.
In each one of the three phases, the goal is to trade up as sales volume and business growth allows. By engaging Encon Commercial, our real estate professional team will make this process successful and assist you with the larger picture of wealth creation for you personally and afford for a better operating facility with each stage of growth.