Investing in Income Properties : The Big Six Formula for Achieving Wealth in Real Estate

by Kenneth D. Rosen

• ISBN13: 9780470384145
• ISBN10: 047038414X
• Format: eBook
• Copyright: 2008-10-01
• Publisher: Wiley

Summary

Praise for INVESTING IN INCOME PROPERTIES "Investing in Income Properties is a cogent and well organized presentation of the principles of real estate analysis, financing, and investment. With his 'Big Six Formula,' Ken Rosen shares his knowledge and experiences on how to analyze and take advantage of commercial real estate investment opportunities. This book should be required reading in all real estate investment courses." --John S. Zdanowicz, PhD, Professor, Finance and Real Estate, and Director of the Jerome Bain Real Estate Institute, Florida International University "Ken Rosen has a unique ability to make the most complicated seem clear and easy to follow. In Investing in Income Properties, he gives practical steps so that the reader can take action and begin or continue to build wealth by investing in income properties. This book will become the buyer's bible." --Alex Zylberglait, Associate Director, National Office and Industrial Properties Group, Marcus & Millichap Real Estate Investment Services "Investing in Income Properties is a step-by-step approach to investing in commercial real estate. It is clear, easy reading with every base covered. This book is a great tool for both the new and seasoned investor." --Donna Abood, Chief Executive Officer, Colliers Abood Wood-Fay, Commercial Real Estate "Ken Rosen's style is straightforward and his formula for building wealth is well grounded in the fundamentals--nothing fancy or tricky about it! He even puts the would-be investor at ease by addressing the fear factors of real estate investing. Twenty-one years into my career as a real estate investment sales broker, I have met many successful investors, but Ken Rosen clearly stands out as a savvy, self-made entrepreneurial investor who is generously sharing his wealth of knowledge and insight in this very instructive and easy-to-read book." --David L. Meline, Executive Director, Capital Markets Group, Investment Sales Specialist, Cushman & Wakefield of Georgia Inc. "One of the best, precise, and accurate real estate books on the market. A must-read for investors at any stage." --Scott K. Sime, Managing Director, CB Richard Ellis Brokerage, Miami-Dade County

Table of Contents

Acknowledgments

Introduction

The Basics

Why Commercial Real Estate?

Real Value, Real Ownership, Real Estate

The Control Factor

Financing Options

The Leverage Edge

Tax Benefits

Access to Information

Easy Troubleshooting

Overcoming Fear

The Bottom Line

Real Estate 101

What Is Real Estate?

Types of Income Properties

What Real Estate Can Do for You

The Search Begins

Purchase and Sale Contracts

Closing

Education

Real Estate Lingo

The Bottom Line

Assembling the Team

The Broker

The Attorney

The Certified Public Accountant

The Bottom Line

Getting the Money

Obtaining a Home Equity Loan

IRA Accounts

Cash Value of Life Insurance

Customized Creativity

The Use of Options

OPM

Ask Your Banker

Present Sacrifice for Future Benefits

The Bottom Line

The Big Six Formula

Location: Planting Investment Roots

Evaluating Locations

Industrial Properties

Short-Term Gains and Declines

Long-Term Gains and Declines

The Bottom Line

Building Quality and Design Efficiency

Ensuring the Long-Term Viability of Your Portfolio

Class A Buildings

Class B Buildings

Class C Buildings

Class B Apartment Buildings

Class B Retail Strip Store Centers

Class B Office Buildings

Industrial Properties

The Bottom Line

Tenant Profile

The Right Fit

Factor No. 1: Rental Rate and Terms

Factor No. 2: Gross or Net Lease

Factor No. 3: Size of Units

Factor No. 4: Impact of a National Tenant

Factor No. 5: Right of First Refusal

Factor No. 6: Potential Condo Buyers

Factor No. 7: Parking Considerations

Factor No. 8: Undesirable Mix of Tenants

The Bottom Line

Upside

Maximizing the Return on Your Holdings

Tenants Can Set the Price of a Building

Upside Strategies

The Bottom Line

Financing

Choosing the Fiscal Formula that Matches Your Goals

Before You Begin: Your Credit Report

Financing Components and Dynamics

Appraisal

The Advantages of Dealing with Local Banks

Ideal Financing

Getting Your Loan Approved

Private Lenders

The Romance of Leverage

Infinity Return

All-Cash Buyers

Burn the Mortgage Quickly

Mortgage Brokers

Healthy vs Unhealthy Debt

The Bottom Line

Price

Looking Beyond the Price Tag to See the Big Picture

The Price-Is-Too-High Syndrome

Things to Know

The Bottom Line

Anatomy of a Big Six Deal

Adam's Manor

The Sellers

Listing the Property

The Buyer

Setting the Stage

The Buyers' Strategy

Sealing the Deal

Brokers Meet the Sellers

Now What?

The Bottom Line

Moving Forward

Management and Leasing to Enhance Your Investment

Managing Apartment Buildings

Managing Small Retail Centers

Managing Small Bay Warehouses

Managing Office Buildings

The Bottom Line

Condo Conversions

Big Money in Small Apartment Buildings

My Start in Condo Conversions

Criteria for Converting Small Buildings

Critiquing the Units

Announcing the Conversion

Announcing the Improvement Program

Handling the Unsold Units

Legal Requirements

Bradford Terrace: A Mini Case Study

The Bottom Line

One Good Invest<$$$>

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