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Commercial Real Estate Pro Network

Commercial Real Estate Professionals who work with Investors, Buyers and Sellers of Commercial Real Estate. We discuss todays opportunities, problems & solutions in Commercial Real Estate.
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Now displaying: 2016
Dec 30, 2016
It happened, our First Deal!   We listened and learned.  We asked questions, listened some more, took notes and did the exercises.  Today, I am happy to report, we bought a 12 unit apartment building. The First Apartment Building In December 2016, we purchased our first 12 unit apartment building.  The property is an older, well maintained two story block building that is not in a flood zone!  The rents are well below market, and we have a strategy in place to increase the rents to market and reduce a couple of expenses to improve the cash flow.   Goldilocks and the four properties This was the fourth property we had under contract, so if you are hunting for a property, don’t give up too soon! The first property we had under contract, the seller sold out from under the listing broker. The second property under contract, our broker walked through, and told us it was a piece of junk, thank you. The third property was a four unit vacation rental with less than two years of rental history.  The deal breaker was financing.  It qualified for residential financing, but got complicated.  A commercial lender offered a quarterly adjustable rate loan, which was no good.  The fourth property was just right.  The Seller had a prior sale fail due to financing.  So, before we made our offer, we engaged a lender and included a commitment letter with our offer.  It helped. If you are looking for your first deal, I’m here to cheer you on.   For more information go to: http://commercialrealestatepronetwork.com darrin@jdarringross.com
Dec 23, 2016
The starting point is different for each new real estate investor.  Some go blindly into the night while others have to be sure.  No matter where one begins, or which option they choose, the first deal is bound to be memorable.   Commercial Real Estate investing takes capital.  Investors with little to no capital who are wanting a more predictable path often start in single family flipping, residential single family or small multi plex rentals.     Jeff Wallenius of North Peak Investments, is a third generation firefighter and real estate investor.  Jeff started investing in real estate by flipping single family houses on his days off from the fire department.   While comparing notes with his fellow firefighters about investments strategies and rates of return, Jeff recognized there was an opportunity to help his fellow firefighters do better with their investments through real estate.    First he spent time educating the firefighters about real estate investing, ROI, cash on cash, etc.  Soon, the group put some money together and invested as a group in different projects.  The positive experience of working with the firefighters led Jeff to start North Peak Investments with a couple of options. To learn more, call or go to: North Peak Investments (855)290-2444 http://www.northpeakinvest.com  
Dec 16, 2016
Real estate investing requires lots of capital.  For the ambitious investor with the know how to find deals, raising capital can still be a challenge.  If you don’t have capital, where can you get it?  Family, and friends can only get you so far.  If you have the ability to do a lot of deals, and the only thing holding you back is capital, you might be a candidate for running a real estate investment fund. Matt Burk, CEO of Fairway America, LLC and SBREfunds.com, works with all types of real estate investors to raise capital and manage funds.  Real estate investors are experts in finding and recognizing opportunities where others don’t.  These same people regularly lack the capital to make the deals happen. On the flip side, there are people with cash looking for a return greater than what the banks will provide.  These people can be an excellent source for capital for the real estate investor. To learn more, go to: http://www.fairwayamerica.com/ https://sbrefunds.com/  
Dec 9, 2016
Bigger Pockets podcast co host, Brandon Turner was ready to become an attorney instead of a real estate investor. While studying for the LSAT, Brandon Turner needed a place to live.  When a realtor suggested he buy a house instead of renting, because it was cheaper.  He bought his first house and became a landlord.  A few years later, when he sold the house for nearly double what he paid, he announced to his parents that he was going in to real estate and not law school. Then he bought another property.  When he did not know how to do something, he searched the internet for answers.  One website he found  had real estate investors that shared their experience and tips.  The site was called Bigger Pockets.  The answers he found led to completed projects and articles written by Brandon that he posted on Bigger Pockets.   In 2013, Bigger Pockets launched its podcast and Brandon was chosen as the co host with Josh Dorkin.   For more go to: https://www.biggerpockets.com Podcast: https://www.biggerpockets.com/renewsblog/category/podcast/ Email: brandon@Biggerpockets.com Twitter: @BrandonAtBP  
Dec 2, 2016
A conforming real estate deal has a conforming property, and a conforming buyer.  A real estate deal with a hurdle or two, is non conforming.  These non conforming deals need creative financing to get the deal done. Adam Cohen, founder of Westone International, always sees the opportunity where others do not.  He thinks outside of the box.  It's what he’s best at.  When it comes to non conforming deals, creative financing is the answer. What is a non conforming deal that needs creative financing?    Properties that have been on the market for too long or have high vacancies, deferred maintenance or management that doesn’t care.  Sellers that are tired of owning and want out, or a lender that is ready to let go to cut their losses are all examples of what properties that need creative financing look like.   How does Creative Financing work? Hard money rewards those that can get the needed work done fast.  It will crush those who can't figure out how to get the work done.  Hard money lenders charge more than banks, and mostly limit the length of the loan to less than twenty-four months.  The additional cost must be considered when creating budgets and profit projections.   Best Advice to be successful: Do a proper analysis Know your marginsItemize all your costsMap out your transactionHave working capital so you can buy rightReserve properly for the what if'sLine up your contractors a head of your purchaseGet your calendar set For more information: www.westoneinternational.com www.adamcohentoday.com
Nov 25, 2016
Buying and selling commercial real estate is a game of poker.  If you know the cards your opponent has, you have an edge.   The cards in Commercial Real Estate are market data. If you don’t have the market data, you might be betting against a full house instead of a pair of two’s.  How can you know what the potential for a property is if you don’t have the data? Get your 10 Reasons to Choose Costar Fortunately, not everyone does their the homework, and that creates opportunities for those in the know. What kind of data can help you make a purchase or sale? The easy market data is the property physical characteristics: address, square footage, year of construction, and owner.  This is the easy information that you can get at the county courthouse.   Fortunately, the collection of all things data can be useful for these specific questions through the use of BIG data.  One specific company that collects and provides information to subscribers is Costar.   If you make your money when you buy, are you more likely to make money on a property that is listed, or an off market property with an owner that has been thinking about selling? What class of asset are you interested in; Multifamily, Retail, Office, Warehouse, Land for development?   To learn more about how market data can help you in your Commercial Real Estate endeavors, contac Chris Beck cbeck@costar.com 503-956-4021  
Nov 18, 2016
Are you the Expert your Commercial Real Estate clients and prospects need to solve their problem? Today’s guest is Nick Raithel, Creator: The 7-Hour Book takes us through how you can increase your value value to your clients and prospects when you are an author with a book.   This is a real way to differentiate yourself from the competition.  A book can lead you to much more.  It can be a springboard to additional opportunities, increased visibility in your community, speaking engagements, keynote speaker in front of your ideal prospects, products, coaching, travel  and more. What should I write about? For some topics that are sought after and you know the answers to download your free: 5 Winning Ideas For Your Book Ok, I’ve got my topic.  So, how do you write a well written book without locking yourself away and ignoring your business and clients?   Engage an Expert. For as little as seven project hours, you can work with The 7-Hour Book, through hour long Skype calls, you can work through the process of pulling the book out of your head.  The end result will be a professionally formatted, written, and designed book you will be proud to present. For more information go to: http://contentcorps.net/  
Nov 11, 2016

What is the difference between a local bank and a national bank?  Who better to ask than a local bank co-president, Jeff Sumpter of Lewis and Clark Bank.   Jeff Sumpter and Trey Maust are founders and co-presidents Lewis and Clark Bank in Oregon.  Jeff was listed as a member of the 40 under 40 by Portland Business Journal in 2009 and mentioned in Simon Sinek’s best seller, “Start with Why”. If you invest in smaller properties with less than four units, you most likely deal with residential lending. Have you borrowed money from a bank for a smaller property recently?   In the name of consumer protection, Dodd-Frank Wall Street Reform and Consumer Protection Act, has made the borrowing process an unrecognizable blur of online electronic signatures compared to pre 2008.   What makes a community bank different? Compare this with a commercial loan from a local bank that feels like having coffee with a friend.  You can spend the time needed to gain mutual understanding, build trust and answer questions the bank may have in person.  If everything makes sense, the loan application is presented to the loan committee and the approval or denial is made! Jeff and Trey started with a plan for how they wanted to treat customers and their employees, recognizing the value of the relationship.  Small local community banks reflect the community they are located in.  They find their niche based on the need of the community they are in.  This gives smaller banks the opportunity to deal with customers one on one.   Community banks know the asset they lend against and typically keep and service their loans. For more go to: Lewisandclarkbank.com  

Nov 4, 2016
So these laws are like the laws of physics, or the law of gravity.  They never change.   The six immutable laws of real estate investing: Always insist on a margin of safety. In other words the goal is not to buy at fair market value but to purchase with a margin of safety.   This time is never different. The four most dangerous words in investing - "this time is different." Whenever someone starts saying this time it’s different, get out of that investment as quickly as you can. Be Patient and Wait for the Fat Pitch. "Patience is integral to any value-based approach... However patience is in rare supply." In commercial real estate there is a time to wait and there is a time to act. When things go bad, the tendency is to dump our real estate quickly, when the prudent thing to do is wait. Be Contrarian. Humans are prone to the herd instinct. When everyone is buying they buy; when everyone is selling they sell. Look to buy when everyone else is selling.   Be Leery of Leverage.  In many instances owners with properties that were over leveraged loss of their properties.  Those homeowners who used their homes as ATM machines learned the hard way too as many lost their homes.   Never Invest In Something You Don't Understand.  You should never invest in a property type or location you don’t fully understand.  For more go to: Marshall Commercial Funding http://www.marshallcf.com/      
Oct 28, 2016
The factors that define the property class designation include age of the property, amenities offered, rents charges, level of service, safety of the neighborhood, uniformity of the property and more. Class A properties The newest property in the area. Features will include the greatest level of amenities in the marketplace Construction finishes will be of the “Best in Class”. Rents will be the highest in the marketplace. Located in desirable neighborhoods. Class B Properties Twenty years old and older.   Well maintained and have little to no deferred maintenance. Located in a safe and desirable neighborhoods. Tenants have stable income Class C Properties Tenants are normally hourly workers.   Located in safe neighborhoods. Turnover tends to be higher Will have deferred maintenance needs.   Everything else Properties do not fit in any of the A, B, C categories and have characteristics including: High crime 4 story walkup Non conforming floor plan or unit configuration Lower rent Lower caliber of tenant   For more go to: John Wilhoit on Amazon.com http://multifamilyinsight.net/  
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