Commercial Real Estate value is simple.  What’s the Net Operating Income.  If you keep up with market rent and expenses, your property’s value will suffer.  Value Add Accounting is an easy way to increase the NOI and the value of your property. Telma Landhorian is a CPA & MBA with experience in Commercial Real Estate.  She makes the case for an outsider’s professional review.   One client gained $20M additional valuation after working with Telma. Value added accounting: The good news, you can fix this. If ownership is willing to take have a trained professional, an outsider, take a look at the books and asses what is. First - Look at the current books.  If the NOI varies greatly from month to month with no explanation as to why, you likely have a problem. The assessment takes a look at each and every line in the operation budget to determine how it compares to the market, and if any improvements can be made. Next - Implement needed changes. In order for change to be adopted by the staff, it has to be demonstrated that ownership supports the change.  Without this, nothing will change. Ongoing - It usually takes about 6 months to make the transition from the old way to the new way.  The procedures need to include regular review and monitoring for real success.  The pain of change is the price of progress.  The benefits will be lasting and help increase the value of the property.   For more go to: https://landhorian.com/ https://www.linkedin.com/in/telmalandhorian  

Leverage is the catapult that gives real estate investors the ability to buy more than they can afford with their own resources.  One way to increase leverage and potential gains is through Multifamily Syndication.    Syndication can provide momentum unavailable to a single investor.   Joe Fairless is an experienced investor who has grown his portfolio to $54 million through syndication. How to create a Multifamily Syndicate   Build anticipation with investors Learn about what your potential investor goals are.  Are they passive or active?   What do they expect.  Once you determine their goals, ask them if they want to invest.   Get Commitment Get 30% more commitment than what you need, you are ready to find a property.  Why do you need greater commitment than the deal calls for? Life happens. Identify the community and property parameters for your investment including: Market Characteristics Go find the property Use all the resources available to you:   Obviously, this is a simplified explanation of what truly happens.  In addition to what is listed there are several legal documents required in order to set up a syndicate. Joe’s advice to anyone considering getting into syndication: Get the knowledge Get a mentor Follow the Blueprint The truth: “It’is a shark tank!” For more go to joefairless.com.  

The Multifamily property marketplace is HOT.  Rick Bean with Rose City Commercial Real Estate explains what it takes to compete in a compete and How to find deals in a HOT Market. Return on investment is the goal of every investor.  The stock market is not providing the desired rate of return, so where do investors go?  Foreign markets are not providing a positive return, so where do foreign investors go?   They go to the US Multifamily Marketplace SUBSCRIBE        iTunes        Stitcher Since the collapse of the mortgage market in 2008, demand for apartments has risen sharply.  Projections show more of the same for the next couple of years. The collapse of the mortgage market forced homeowners who lost their home into the renters market.  Some potential buyers have decided they are no longer interested in being burdened by a mortgage, or do not qualify for a bank mortgage to buy a single family home. How to Find Deals in a HOT Market Buyers wanting more options to chose from are turning to working with Commercial Real Estate Brokers that look for Off Market Properties. Additional tactics used by aggressive Buyers in order to gain an advantage with Sellers is to make the deposit go hard right away. For more contact Rick  PH:  503.577.1034 EM:  rick@rosecitycre.com Web:  www.rosecitycre.com

Insurance is a grudge purchase. What can you do to Win at Insurance? For many insurance buyers, the thought of buying insurance is nothing to look forward to. The process is similar to applying for a loan, answering questions, waiting on the agent or company to provide numbers, and then make a decision to purchase based on nothing you understand.   What are your alternatives to buying insurance? You can “self insure”.   That’s a dicey option.  If you never have a loss, you win.  But, if you have a claim, it could wipe you out.   Another option.   For those with ample means, cash flow and few claims, there is another option. Create your own insurance company! Create a Captive Insurance Company. A Captive Insurance company is a wholly owned subsidiary created to provide insurance to its non-insurance parent company (or companies). Captives are established to meet the risk-management needs of the owners or members. Hale Stewart, author of US Captive Insurance Law, joined me to speak about what a captive is, how it works and who can benefit from it. There are many advantages to proceeding with a captive. A broader contract: the chance to cover exposures that your standard company will not. Easier claims adjustment. Potentially lower insurance costs. Tax advantages provided to insurance companies For more info, join our free webinar and receive a free white paper explaining the benefits of Captive Insurance Companies. https://attendee.gotowebinar.com/register/4858456386013887234. WHEN: August 4, 2016     Noon central  

Profitable Real Estate Investing requires strategy and discipline.   Jake & Gino have grown from zero to $32M portfolio in just three years. Most beginners struggle to get out of the gate.  It took two years of rejection before they landed the first deal, and from there, they have never looked back. Along the way they were methodical, kept notes, learned what not to do, and what worked.  The result is they have developed a system.   Buy Right.Manage Right,Finance Right. In order to Buy Right, you have to know what works for you and be prepared to walk away from the deal.  Every deal. Once you have a the deal, you have to Manage Right.  Make certain the property has curb appeal so that it attracts tenants willing to pay market rents.  This can be as simple as landscaping and paint, keep the grounds picked up and free from trash. Finance Right.  This relies on your ability to actively market your property to local community based lenders.  To do this, you have to be able to present your numbers is the standard format the bank needs in order to evaluate your property and the opportunity, including.   If you want to follow the model that Jake and Gino, a pizza boy and a drug rep, developed to go from zero to a $32 million in in portfolio assets, check out their Wheelbarrow Profits Academy.   http://jakeandgino.com/wheelbarrow-profits-launch-dg/ If you are looking for some direction from experienced investors, I encourage you to get with Jake and Gino.  

Retail Malls are being tested, and their survival is at stake.  Retail Malls Change or Die.   Metcalf South was the mall of my youth where I watched the dishwasher with the glass front door wash dishes, Santa arrive by helicopter and where my parents took me to buy every pair of jeans and shoes.   Now this once thriving mall on 45 acres in suburbia Kansas City is dark.  It is listed on the website, DeadMalls.com with hundreds more.  Few states have been spared a closing retail mall.   What happened?  How could such a vibrant central shopping center to a community fail? Greg Lutje, partner at Samuels Yoelin Kantor LLP a Commercial Real Estate attorney joined me to discuss the changing landscape facing retail malls everywhere.   In researching the topic, there are many opinions and factors have contributed.  Is it: Over built retail, simply more places to buy than demand? Decline in numbers of the Middle Class? Technology; the internet? Online retailers, have they replaced the traditional mall? Have the consumer wants changed? People are moving from Suburbs to Urban centers? Q: What does the customer want? A: More than a pair of jeans in a different size.   Not all malls are closed or forgotten.  Some continue to thrive.  What are the successful malls doing to remain relevant? Successful Mall owners have created an “Experiences” for shoppers.   For more go to: www.samuelslaw.com  

Most investors can point to a handful of reasons they invest in real estate such as: Cash Flow - The positive cash flow from commercial real estate is a major advantage over owning stocks. .   Tax relief - The ability to defer capital gains through a 1031 exchange is not available in stocks. More Tax relief - Depreciation on commercial real estate works to reduce taxable income.    Leverage; The ability to acquire an appreciating asset with borrowed funds is unmatched in stocks. I spoke with Doug Marshall of Marshall Commercial Funding to discuss some "Not So Common" reasons why Real Estate investing is more advantageous than stocks. Real Estate vs Stocks Three Uncommon Reasons why Real Estate Beats Stocks: The Commercial Real Estate Market is an inefficient market place.  Unlike the stock exchange, where the purchase price is the listed price, Real Estate allows for the buyer to enter into a purchase agreement and a negotiated price.  The buyer may have information that is not known to the seller, or that the seller has not yet acted on.  This can favor the buyer with the ability to increase the property value quickly.CRE owners have direct ability to influence on the outcome of their investments performanceNo more need for retirement calculators.  With Commercial Real Estate you can make a reasonable guess as to how much you’ll need to have accumulated in real estate in order to retire comfortably.  ? For more information, go to http://marshallcfblog.com/3reasons    

It started with a duplex and grew to hundreds of thousands of sq feet in commercial real estate.  For over forty-five years, Richard Anderson and his wife have been Investing in Real Estate. Before real estate, Richard learned from his grandfather who suffered some significant losses in the stock market crash.  He taught Richard about investing in the stock market and specifically about two stocks: Disney & Woolworth. In a few years Richard had enough for a downpayment on Seattle duplex with owner financing.  The duplex needed some work, but he and his new bride were now invested in real estate.   They lived in one unit and rented out the other.  They were thrifty.  Richard did all of the construction work, electrical, plumbing, carpentry and his wife, tended to all of the landscape and gardening. The sale price was $10,000, and the seller carried a note for $9,000.   Four and a half years later they had saved some money and sold the duplex for $15,500.  Not a bad return almost 50% return in less than five years.   The next property was a 13 unit townhouse style apartment building with a courtyard.  He and his wife now had two small children, so he converted two units into one unit for additional living space.   The lessons he learned from his grandfather, made Richard a cautious investor.  After some thought, Richard came to the conclusion, if a depression occurred and he lost everything, what’s the difference if you owe $1,000 or $100,000? Since then, Richard and his wife have invested in; Retail, Restaurants, Apartments and Warehouse from Washington to Florida and several points in between.

Weed, Cannabis, Mary Jane, no matter what you call it, there is a growing demand for Cannabis Friendly Real Estate Investors willing to rent to space to cannabis business owners.   Retail & warehouse space are in short supply.  New legal cannabis business owners are looking for a place to call home near you.   I had the chance to speak with Ryan George of 420property.com .  Ryan recognized the demand and developed a marketplace for cannabis friendly landlords and tenants to connect. Subscribe: itunes   blogtalk radio How big is the legal cannabis business? The National Football League is estimated to generate $12 Billion in annual revenue.  The Legal Cannabis business is projected to be a $7.1 Billion business by end of 2016. In its fourth edition of The State of Legal Marijuana Markets, ArcView Market Research predicts that the legal cannabis market will see a massive $21.8 billion in total annual sales by 2020. What are the Challenges? The industry education process is full of industry trade shows, ballot measures, and public discussion.     The industry needs legitimate business owners and operators.   Financing, Real Estate, Banking are all challenges for the business.     For more information go to: www.420Property.com Email: rgeorge@420Property.com Ph: 925-478- 9805

The Horsepower of Leverage is the secret sauce in Real Estate Investing.   This is the aha Erik Stark and his partner figured out after successfully buying and wholesaling a deal using none of their money. This lesson has proved critical to their growth in Detroit, MI and now sunny Florida. Erik’s experience in flipping goes back to his childhood, riding bikes.  He had fun, tricking out bikes he found in the trash and selling them to his friends and others for a profit.   Subscribe: itunes   blogtalk radio Upon graduation from high school, Erik was all set to start a career in real estate.  However, due to lack of interest, the class was cancelled, and Erik thought it was a sign to run from real estate. A few years after high school, Erik reconnected with a good friend from high school, Steve Mills.  They quickly realized they were of like mind in their entrepreneurial spirit. The Horsepower of Leverage. Since their beginning, Erik & Steve have done over 400 flips.  They have found unlimited capital to fund their deals, created a top 100 list of target properties they want to acquire including, single family, multifamily and retail.   As the margins have been squeezed on flips, they have been able shift into wholesale and development and look elsewhere to expand their real estate empire.