Encyclopedia of Commercial Real Estate Advice

TERRY PAINTER is the founder of Apartment Loan Store and Business Loan Store—mortgage-banking firms that have closed over four billion dollars in commercial loans nationally. He is a member of the Oregon Bankers Association, the Mortgage Bankers Association, and Forbes Real Estate Council, where he is a contributing writer. Terry lives in Portland, Oregon and the Dominican Republic.

• Foreword xixIntroduction xxiThis Book Will Save You Time and Money xxiiiHow to Use This Book xxivPart I Smart Strategies for BuyingChapter 1 Who are You When Buying a Commercial Property? 3Seven Top Character Traits of Experienced Commercial Real Estate Investors 4Four Phases of the Commercial Real Estate Market Cycle and the Best Time to Buy 11The Lowest-Risk Property Types to Choose 13Ten Risk-Lowering Action Steps 16Four Levels of Risk Based on Property Condition, Income, Location, and Occupancy 18Chapter 2 Seven Smart Strategies for Adding Value When Buying 211. Have Your Down Payment, Professional Team, and Financing Together Before You Go Shopping 212. Use Leverage Responsibly 223. Define Your Property Search Objectives 254. Four 15-Minute Methods of Determining Property Value 285. Choose a Property That Can Be Recession-Proofed 306. Choose the Best Team Members 337. Winning the Numbers Game—Making and Negotiating Offers 36Encyclopedia Topic A Buying 43Part II Smart Strategies for Buyer Due DiligenceChapter 3 Outstanding Due Diligence for Buyers 81Twelve Due Diligence Mistakes That Buyers Should Avoid 82Is This Property “Who” You Thought It Was? 91Guidelines for Calculating How Much to Lower The Sales Price 92Comming up with Your Pitch to Lower the Sales Price After Due Diligence 94Encyclopedia Topic B Due Diligence 97Part III Smart Strategies for Raising InvestorsChapter 4 Raising Money and Creating Investor Partnerships 123Buying Commercial Real Estate Without Money or Experience 123Eight Countermeasures for Not Having Enough Money and Experience 124Using Other People’s Money to Get Rich When Buying Commercial Property 129How the Inexperienced Deal Manager/Sponsor Can Get Started 131What Percentage of Ownership Should You Get for Putting the Deal Together? 137Why Non-Recourse Financing Is the Key to Raising Investors 138Nine Pitfalls to Avoid in Investor Partnerships 139Forming a Real Estate Syndication 141Encyclopedia Topic C Raising Investor Partners 145Encyclopedia Topic D Property Ownership Entity 161Part IV Smart Strategies for SellersChapter 5 Hold, Cash-Out Refinance, Sale, or 1031 Exchange? 171Cash-Out Refinancing to Purchase More Investment Property 173Is This a Good Time to Sell Your Commercial Property? 175You’ve Got to Love the 1031 Tax-Deferred Exchange 178Putting the Cart Before the Horse: The 1031 Reverse Exchange 183Chapter 6 Adding Value in the Selling Process 187Determining the Maximum Sales Price 187Power Brokers are Highly Skilled at Pushing Up the Sales Price 190Twelve Mistakes to Avoid When Selling Your Commercial Property 192Value-Adding Before Selling 196Why You Should Do a For Sale by Owner 199Why You Shouldn’t Do a For Sale by Owner 199Benefits o fWorking with an Experienced Commercial Real Estate Broker 200Should You Owner-Carry? 201Alternative to Owner-Carry: The Master Lease Purchase 202Encyclopedia Topic E Selling 205Part V Smart Strategies for RepositioningChapter 7 Unlocking Hidden Wealth with Repositioning 221Repositioning a 246-Unit Multifamily Property in Oklahoma City 222Repositioning a 38-Unit Multifamily Property in Garland, Texas 224Manage Your Reposition Project According to a Plan 226Three Types of Repositioning 226Tips for Choosing the Best Property for Repositioning 227The Biggest Bang for the Buck 229Encyclopedia Topic F Repositioning 239Part VI Smart Strategies for DevelopingChapter 8 Why Developers are at the Top of the Food Chain 257What are Developers Made Of? 257How Much Do Commercial Developers Make? 259How Do Commercial Building Developers Earn Money? 260How Do Commercial Land Developers Make Money? 261Traits of the Best Commercial Real Estate Developers 261What Is the Typical Day Like for a Commercial Developer? 265Can You Become a Developer without Experience? 266Fourteen Mistakes to Avoid When Developing Commercial Property 269Chapter 9 50 Steps of Developing and That Isn’t All of Them 275The 15 Professionals Commercial Developers Team Up With 277The Commercial Development Process—Five Stages 280Encyclopedia Topic G Development 295Part VII Smart Strategies for FinancingChapter 10 Trade Secrets for Getting the Best Rate, Loan Fees, and Terms 319The Truth About How Commercial Lenders Set Rates, Terms, and Loan Fees 320How Much Can Lenders Bend? 322Advice from an Insider on Negotiating with Lenders 322Nine Insider Tips for Getting the Best Loan Terms 330A Seven-Step, Cutting-Edge Recipe for Getting Lenders to Compete 333Why You Should Join the Non-Recourse Loan Club 336Chapter 11 Taking Charge of Your Commercial Loan 339Why You Should Take a Hands-On Approach 340The Top Six Risks Commercial Lenders Dread 342The Seven Preapprovals in Commercial Lending 343The Truth About Commercial Appraisals and Why They Sometimes Kill Deals 349Why You Should Use a Commercial Loan Broker 351Ten Mitigations That Can Help You Qualify for Your Commercial Loan 352Vetting Your Lender and/or Commercial Loan Broker 354Encyclopedia Topic H Financing 357Encyclopedia Topic I Commercial Loan Programs 391Part VIII Smart Strategies for Managing and LeasingChapter 12 Smart Strategies for Managing and Leasing 407Self-Management Versus Professional Management 407