Commercial Real Estate Investing A Creative Guide to Succesfully Making Money

by de Roos, Dolf

• ISBN13: 9780470227381
• ISBN10: 0470227389
• Edition: 1st
• Format: Paperback
• Copyright: 2008-02-08
• Publisher: Wiley

Summary

Millions of people are investing in real estate, but few ever consider the money-making potential of commercial properties. Whether they think it's too expensive or too complicated to get into, thousands of successful residential investors never take the next step to real estate profits.

Author Biography

Dolf de Roos is a New York Times and Wall Street Journal bestselling author and prolific real estate investor. He is the Chairman of Property Ventures Ltd, an innovative publicly-held property investment company with holdings ranging from office towers to vineyards, and a founding director of Best Choice Properties. His other real estate titles include Real Estate Riches, The Insider's Guide to Real Estate Investing Loopholes, The Insider's Guide to Making Money in Real Estate, The Insider's Guide to Tax-Free Real Estate Investments (all from Wiley), and 101 Ways to Massively Increase the Value of Your Real Estate without Spending Much Money, from Timelife Direct. For more information, visit www.dolfderoos.com

Table of Contents

Preface	p. xi
Acknowledgments	p. xiii
Notes on Reading This Book	p. xv
Introduction	p. xvii
Just What Is Commercial Real Estate?	p. 1
People versus Contracts	p. 5
Why Invest in Commercial Real Estate?	p. 11
Lease Duration	p. 11
Assignment of Lease	p. 15
The Tenants Pay the Outgoings	p. 17
Tenants Earn Their Income on Your Premises	p. 18
Landlord Pays for Improvements to Commercial Premises	p. 21
Certainty of Collecting Rent	p. 22
Upward-Only Rent Reviews	p. 24
Government Interference	p. 25
Management Overhead	p. 27
The Downside of Commercial Real Estate	p. 29
Much More Difficult to Acquire Commercial Tenants	p. 29
Banks Will Lend a Smaller Proportion of a Commercial Property	p. 30
The True Value of Real Estate	p. 33
How to Overcome the Disadvantages of Commercial Real Estate	p. 41
How to Attract a Tenant	p. 45
Who Wants to Run a Funeral Business?	p. 45
Finding a Tenant for a Warehouse in an Oversupplied Market	p. 50
The Power of the Internet	p. 55
Many Prospective Tenants Know Your Building	p. 56
Engage a Real Estate Firm or Property Management Company to Find a Tenant	p. 59
Wait for (or Cause) a Zone Change	p. 60
Split a Single Tenancy into Multiple Tenancies	p. 62
Consolidate Multiple Tenancies into One	p. 64
The Ultimate Way to Attract a Tenant	p. 66
How to Increase Rental Income (and hence the Capital Value)	p. 71
Helipads	p. 72
Cell Phone Towers	p. 73
More Rooftop Antics	p. 74
Naming Rights	p. 76
Air Space	p. 77
Parking	p. 81
The Humble Webcam	p. 89
Interior Remodel	p. 93
The Triple Win of Alarm Systems	p. 100
Rent Reviews to Market	p. 101
What Were the Disadvantages of Commercial Real Estate?	p. 103
Finding Commercial Real Estate	p. 107
Newspaper Advertisements	p. 107
Real Estate Firms	p. 112
The Internet	p. 114
Keeping Your Eyes Peeled	p. 116
Networking	p. 118
Word of Mouth	p. 118
Helping Other People	p. 124
The 100:10:3:1 Rule	p. 126
Summary	p. 130
Analyzing Deals	p. 131
Due Diligence	p. 132
Four Questions to Ask about Any Commercial Property	p. 142
Return on Investment	p. 144
Negotiating Commercial Real Estate Deals	p. 155
The Uncooperative Seller	p. 156
Other Negotiations	p. 159
Financing Commercial Real Estate	p. 163
Proposal for Finance	p. 166
Summary Paragraph	p. 171
General Description of Property Offered as Collateral	p. 174
Property Portfolio Statistics and Cash Flows	p. 176
Statement of Assets and Liabilities	p. 177
What to Include in the Appendix	p. 178
How to Use the Proposal for Finance	p. 179
Umbrella Loans	p. 182
Structuring Commercial Real Estate Ownership	p. 183
Managing Commercial Real Estate	p. 187
Tenant Selection	p. 188
Rule Enforcement	p. 189
Rent Reviews	p. 190
How to Get a Tradesman to Do Your Work First	p. 190
Accounting	p. 193
Summary	p. 193
How to Beat the Average	p. 195
Geography	p. 196
Zone Changes	p. 199
Proximity to Views	p. 200
The Center of Town	p. 200
High Technology	p. 201
Leasing and Management Tactics to Beat the Average	p. 202
Combining All Methods of Beating the Average	p. 202
Raw Land	p. 205
Best Choice Properties	p. 208
Spring Mountain Ski Ranch	p. 211
The Benefit of Having Great Partners	p. 214
Getting Back to Commercial Real Estate Investing	p. 216
Extraordinarily Odd Commercial Deals	p. 217
Oil in Them Thar Hills	p. 219
Marine Farms	p. 222
Property Ventures Limited	p. 225
Five Mile	p. 230
Never Sell	p. 233
Thirteen Golden Rules of Commercial Real Estate Investment	p. 239
Risk Is Equal to Yield	p. 239
Ensure Safety of Principal	p. 240
Control Your Liabilities	p. 240
Add Value to a Deal	p. 241
A Broker or Agent Must Bring Something to the Deal	p. 242
Real Estate Is a Long-Term Investment	p. 243
The Number of Voting Partners Is Directly Proportional to the Failure of the Project	p. 244
You Are Going to Be in a Lawsuit	p. 244
It Only Takes One Deal to Go Broke	p. 245
It Only Takes One Deal to Make a Million Dollars	p. 245
The Value of a Property Is Limited by the Tenant's Ability to Pay Rent	p. 246
Appreciation and Inflation Are Compounded Annually	p. 246
You Cannot Give Kindness Away-It Is Always Returned	p. 247
Investing Abroad	p. 249
Live Life to the Fullest	p. 261
About the Author	p. 269
Resources	p. 271
Index	p. 281
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