I recently had the privilege of being interviewed on the Commercial Real Estate Pro Network podcast. The host, Darrin Gross, and I discussed my soon to be released book, Mastering the Art of Commercial Real Estate Investing: How to Successfully Build Wealth and Grow Passive Income from Your Rental Properties. Shown below is an outline of what we discussed.
CREPN #146 – Mastering the Art of Commercial Real Estate Investing
What does it mean to master the art of commercial real estate investing?
- Investing in CRE is more of an art than a science
- It’s more than crunching the numbers
- It’s a lot more subjective than objective
What are the key takeaways from the book?
- Why buying commercial real estate is better than owning any other investment asset
- What the six immutable laws of real estate investing are
- What the habits of highly successful real estate investors are
- Lessons I learned from investing in one of my “loser” properties
- How you go about getting the best possible loan for your property
- Take the quiz in the book to see how well you know the six types of real estate calculations that every CRE investor need to know
What are the six types of real estate calculations ever investor should know? Take the quiz to find out how knowledgeable real estate investor you are.
- How do you value CRE?
- How do you determine the loan amount based on the lender’s underwriting parameters?
- How do calculate a property’s cash-on-cash return?
- How does leverage impact a property’s cash-on-cash return?
- How do the 3 most common amortization methods impact your investment?
- What minimum financial requirements do lenders require from borrowers to be approved for a loan?
Why is owning CRE is better than owning any other type investment asset?
- There are seven reasons outlined in the book. Here are two:
- Real estate investors have considerable influence on the outcome of their investments. They can:
- Make capital improvements to tired properties
- Change the management for those poorly managed
- They can re-tenant the property with better quality and higher paying tenants
- With any other investment you are a passive investor with no ability to influence the return on your investment
- If your investments are in anything other than CRE you have no way of knowing if you will run out of money during your retirement years. But not so with CRE. By answering 3 basic questions, you can determine if you have enough to retire well. It’s all about living off the cash flow from your real estate investments.
Why is using a mortgage broker the best way to get financing for your property?
- He knows more lending sources than you do. He knows who has the most competitive rates and terms for your property type.
- He has already established a good working relationship with his lending sources. You, on the other hand, have no relationship with these lenders.
- Takes significantly less time on the part of the owner than shopping the mortgage market on their own.
- He is your best advocate of things go wrong. The lender wants to keep the mortgage broker happy because he brings them business regularly.
- Go to marshallcf.com
- Click on Resources on the top navigation bar
- On the drop down menu click on Book – Mastering the Art of Commercial Real Estate investing