The Encyclopedia of Commercial Real Estate Advice

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