- How to Buy Foreclosed Commercial Properties at a Discount at Auctions
- Guidelines for Getting Started in Commercial Real Estate and Choosing Low-Risk Properties
- How to Value a Property in 15 Minutes
- How to Fake it Until You Make it When Raising Investors
- Should You Hold, Sell, 1031 Exchange, or Cash-Out Refinance?
Table of Contents
Foreword xix
Introduction xxi
This Book Will Save You Time and Money xxiii
How to Use This Book xxiv
Part I Smart Strategies for Buying
Chapter 1 Who are You When Buying a Commercial Property? 3
Seven Top Character Traits of Experienced Commercial Real Estate Investors 4
Four Phases of the Commercial Real Estate Market Cycle and the Best Time to Buy 11
The Lowest-Risk Property Types to Choose 13
Ten Risk-Lowering Action Steps 16
Four Levels of Risk Based on Property Condition, Income, Location, and Occupancy 18
Chapter 2 Seven Smart Strategies for Adding Value When Buying 21
1. Have Your Down Payment, Professional Team, and Financing Together Before You Go Shopping 21
2. Use Leverage Responsibly 22
3. Define Your Property Search Objectives 25
4. Four 15-Minute Methods of Determining Property Value 28
5. Choose a Property That Can Be Recession-Proofed 30
6. Choose the Best Team Members 33
7. Winning the Numbers Game—Making and Negotiating Offers 36
Encyclopedia Topic A Buying 43
Part II Smart Strategies for Buyer Due Diligence
Chapter 3 Outstanding Due Diligence for Buyers 81
Twelve Due Diligence Mistakes That Buyers Should Avoid 82
Is This Property “Who” You Thought It Was? 91
Guidelines for Calculating How Much to Lower The Sales Price 92
Comming up with Your Pitch to Lower the Sales Price After Due Diligence 94
Encyclopedia Topic B Due Diligence 97
Part III Smart Strategies for Raising Investors
Chapter 4 Raising Money and Creating Investor Partnerships 123
Buying Commercial Real Estate Without Money or Experience 123
Eight Countermeasures for Not Having Enough Money and Experience 124
Using Other People’s Money to Get Rich When Buying Commercial Property 129
How the Inexperienced Deal Manager/Sponsor Can Get Started 131
What Percentage of Ownership Should You Get for Putting the Deal Together? 137
Why Non-Recourse Financing Is the Key to Raising Investors 138
Nine Pitfalls to Avoid in Investor Partnerships 139
Forming a Real Estate Syndication 141
Encyclopedia Topic C Raising Investor Partners 145
Encyclopedia Topic D Property Ownership Entity 161
Part IV Smart Strategies for Sellers
Chapter 5 Hold, Cash-Out Refinance, Sale, or 1031 Exchange? 171
Cash-Out Refinancing to Purchase More Investment Property 173
Is This a Good Time to Sell Your Commercial Property? 175
You’ve Got to Love the 1031 Tax-Deferred Exchange 178
Putting the Cart Before the Horse: The 1031 Reverse Exchange 183
Chapter 6 Adding Value in the Selling Process 187
Determining the Maximum Sales Price 187
Power Brokers are Highly Skilled at Pushing Up the Sales Price 190
Twelve Mistakes to Avoid When Selling Your Commercial Property 192
Value-Adding Before Selling 196
Why You Should Do a For Sale by Owner 199
Why You Shouldn’t Do a For Sale by Owner 199
Benefits o fWorking with an Experienced Commercial Real Estate Broker 200
Should You Owner-Carry? 201
Alternative to Owner-Carry: The Master Lease Purchase 202
Encyclopedia Topic E Selling 205
Part V Smart Strategies for Repositioning
Chapter 7 Unlocking Hidden Wealth with Repositioning 221
Repositioning a 246-Unit Multifamily Property in Oklahoma City 222
Repositioning a 38-Unit Multifamily Property in Garland, Texas 224
Manage Your Reposition Project According to a Plan 226
Three Types of Repositioning 226
Tips for Choosing the Best Property for Repositioning 227
The Biggest Bang for the Buck 229
Encyclopedia Topic F Repositioning 239
Part VI Smart Strategies for Developing
Chapter 8 Why Developers are at the Top of the Food Chain 257
What are Developers Made Of? 257
How Much Do Commercial Developers Make? 259
How Do Commercial Building Developers Earn Money? 260
How Do Commercial Land Developers Make Money? 261
Traits of the Best Commercial Real Estate Developers 261
What Is the Typical Day Like for a Commercial Developer? 265
Can You Become a Developer without Experience? 266
Fourteen Mistakes to Avoid When Developing Commercial Property 269
Chapter 9 50 Steps of Developing and That Isn’t All of Them 275
The 15 Professionals Commercial Developers Team Up With 277
The Commercial Development Process—Five Stages 280
Encyclopedia Topic G Development 295
Part VII Smart Strategies for Financing
Chapter 10 Trade Secrets for Getting the Best Rate, Loan Fees, and Terms 319
The Truth About How Commercial Lenders Set Rates, Terms, and Loan Fees 320
How Much Can Lenders Bend? 322
Advice from an Insider on Negotiating with Lenders 322
Nine Insider Tips for Getting the Best Loan Terms 330
A Seven-Step, Cutting-Edge Recipe for Getting Lenders to Compete 333
Why You Should Join the Non-Recourse Loan Club 336
Chapter 11 Taking Charge of Your Commercial Loan 339
Why You Should Take a Hands-On Approach 340
The Top Six Risks Commercial Lenders Dread 342
The Seven Preapprovals in Commercial Lending 343
The Truth About Commercial Appraisals and Why They Sometimes Kill Deals 349
Why You Should Use a Commercial Loan Broker 351
Ten Mitigations That Can Help You Qualify for Your Commercial Loan 352
Vetting Your Lender and/or Commercial Loan Broker 354
Encyclopedia Topic H Financing 357
Encyclopedia Topic I Commercial Loan Programs 391
Part VIII Smart Strategies for Managing and Leasing
Chapter 12 Smart Strategies for Managing and Leasing 407
Self-Management Versus Professional Management 407
