Transitioning to Commercial Real Estate

Transitioning to Commercial Real Estate

 

This year I have been invited to present a  morning and afternoon class for the San Diego Association of Realtor s annual real estate expo.

SDAR is hosting it so there is no cost (sdar charged $45 for this class when I taught in their offices last year) but I will be up-selling ginzu knives and snuggies

What do you get the dad who has everything for Christmas? A superman Snuggie

What do you get the dad who has everything for Christmas? A superman Snuggie

at the end of the presentation. Nothing like having snuggies for the whole family as long as yours is of Superman!

 

Just kidding. Any of you who have been to these courses know I don’t sell anything except……. the fact I am a buyer and that providing you with tools I have learned and used you’ll consider calling Gabhart Investments when you have a great property for sale.

Ok here is the sch-peel

In this class you will learn if the highly lucrative, highly competitive business of commercial real estate brokerage is right for you. This business niche is not for everyone, so attend this class and find out if you are up to the challenge.

Commercial Real Estate Course topics

  • What is commercial real estate?

  • Market outlook

  • How long will it be before I make money?

  • What are the risks?

  • Do I need experience in commercial real estate?

  • How to leverage your existing client base to turbo charge your success

  • Choosing the right company to work for

  • Additional resources to get more information on commercial real estate

  • Here is what we are not covering

  • How to analyze a property (I will talk about what you may want to know/learn and where to get that information)

  • This is a good intro if you are thinking about making a time or money investment into the commercial side of things.

It’s not for everyone so don’t expect a bunch of ra ra sis boom ba that anyone can get rich doing it. I will give you a no nonsense run down of the business as I have experienced it.

I will say that if there is a way to get into Real Estate with little or no money (not little or no time) then commercial real estate may be a great avenue. This is what allowed me to transition from doing Real Estate as a hobby to a career that has been very rewarding (and challenging – NO GET RICH QUICK GRASS HOPPAH)

 

I will say

Real Estate gives me flexible hours (not short hours but time availability to do things like see my kids plays at school during the day etc.)

And work from my H2Office while not in my physical office. Check out this awesome set up.

Real Estate gives you the flexibility to work from anywhere!

Real Estate gives you the flexibility to work from anywhere! My second home office...

 

 

 

 

 

 

 

 

 

This Friday at the Town & Country Resort in San Diego
http://www.sdarexpo.com/html/exhibitorOpp/Breakout.html
10:00 a.m. – 11:15 a.m & 2:45 p.m. – 4:00 p.m

 

Also don’t forget to follow our real estate adventures by going to our individual property websites…….

For the most updated information & news on real estate & Gabhart Investments go to our facebook & twitter pages

ps. click here to like us on facebook

 & Here to follow us on twitter

 

Stayed at a Holiday in Express and now I am teaching Real Estate Investing

Below is an outline of the event I will be putting on tomorrow at the Double Tree in San Diego at hotel circle. Through cliff notes, youtube, wikipedia and staying the night at a holiday inn express really helped me out

For those of you who can’t make it or are unsure what it is about I am pasting the outline here. The lines are fill ins we will discuss and I plan on it being pretty interactive. May even throw in a cold call to a property owner to see if they will sale. Hope they don’t yell at me!

Click here for information on the event

gabhart investments, Inc

A GUIDE TO SUCCESSFUL REAL ESTATE INVESTING

Investing & Generating Wealth with Apartments



APARTMENTS

  1. I. Introduction

  1. II. Apartments, Office, Industrial, Single Family Houses Ohh my!!!

  • Why buy
  • Why Sale
  • Why Wait?
  • ______________________________________________________
  • _____________________________________________________
  • ____________________________________________________
  1. III. Figuring it all out and where to go from here…

v  Pick a niche & create a plan

  • Basic business plan

ü  Questions to ask yourself

  • Experience
  • Type of property
  • Where are you going to buy
  • Size
  • __________________________________________________________________
  • Coinage$$$ and where are you going to get it?
  • ___________________________________________________________
  • ____________________________________________________________
    • Investors
    • Know the rules
    • I am not an attorney nor even that smart so get an attorney but here is what I do know
    • ________________________________________________________
    • ___________________________________________________
    • _______________________________________________________
    • ___________________________________________________
    • How much of a deposit do you have?
    • Lenders
      • Who should I go to a bank or broker?
      • ____________________________________________________________
      • Risk tolerance
      • Team
        • Attorney
        • Accountant
        • _________________________________________________________
        • ________________________________________________________
        • ________________________________________________________
        • ________________________________________________________
  1. IV. Developing Expertise

v  Geographic knowledge

  • Drive all the areas you are buying in
  • Barriers to entry?

ü  __________________________________________________________________

ü  __________________________________________________________________

ü  ________________________________________________________

ü  ___________________________________________________________________

ü  ______________________________________________________

ü  ____________________________________________________________

ü  ___________________________________________________________

v  Past sales transactions

  • Where to get information
    • Agents & their companies
    • Public records
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • ___________________________________________________________
    • Oh yeah watch out for…

ü  Data is based on pro-forma (projections)

ü  ________________________________________________________________

  • Price trends

ü  Are prices moving up or down

  • Are actives selling for more or less than the solds?
  • _______________________________________________________________
  • _______________________________________________________________
  • Call agents to get insight

ü  Months/Years of inventory

  • Here’s how
  • Rental market

ü  Know your rents!

  • Survey

You will find other deals this way

  • ___________________________________________________________
  • ___________________________________________________________
  • Property management companies
  • Local apartment owners associations
  • ____________________________________________________________
    • Craigslist
    • _______________________________________________________
    • Know the expenses of type, age and location of buildings

ü  Same as above

ü  __________________________________________________________________

  1. V. Now you’re an expert what’s next? FINDING THE DEALS

v  What is a deal?

v  _______________________________________________________________________

v  _______________________________________________________________________

v  _______________________________________________________________________

v  Finding off market or pocket deals

  • Go straight to the source – owners

ü  Tracking them down

ü  __________________________________________________________________

ü  __________________________________________________________________

ü  Costar

ü  _________________________________________________________________

ü  _________________________________________________________________

ü  _________________________________________________________________

ü  _________________________________________________________________

v  Shortlist & rank properties

  1. VI. Ok so you’ve found a deal what’s next?

v  Analyze

v  Let’s take some deals

  1. I. Getting the Cash

v  Whether a lender or investor they want to know _______

v  Creating a proposal

  • Introduction & cover page
  • Executive summary
  • _____________________________________________________________________
  • _____________________________________________________________________
  • Property specific

ü  Investment details

  • Address etc.
  • Purchase information
    • Price
    • Units
    • ______________________________________________________________
    • Financial information
      • Down payment
      • __________________________________________________________

ü  Executive summary

  • Acquisition costs
    • Purchase price & costs
    • Investment – cash
    • ______________________________________________________________
    • Investment information
      • Purchase price
      • Price per unit
      • __________________________________________________________
      • Income, expense & cash flow
        • Gross scheduled income
        • Vacancy and credits
        • _____________________________________________________
        • _____________________________________________________
        • Debt service
        • Cash flow before taxes
        • Debt service
        • Financial indicators
          • Cash on cash return
          • IRR
          • _________________________________________________
            • ____________________________________________
            • Operating expense ratio

Executive Summary

v  Property description

v  Property details

  • Construction
  • Age
  • Style
  • ______________________________________________________________________
  • ______________________________________________________________________
  • Income & expense statement
  • Property metrics

ü    CAP Rate

ü   _____________________________________________________________

ü   _____________________________________________________________

For the most updated information & news on real estate & Gabhart Investments go to our facebook & twitter pages

ps. click here to like us on facebook

 & Here to follow us on twitter

 

30 Day Property Flipping Challenge half way there

OK I am halfway through with a personal challenge of mine. Buy 3 properties by June 1st and since starting this blog post/newsletter it looks like I have my first acceptance 5/14 which we will close  and start construction 5/18 and try to put it back on the market within 2 weeks if everything goes according to plan (never does).

All of my hard work over the last couple weeks has really been paying off. I am getting calls each day from Realtors or Wholesalers who understand what I do to present with opportunities because they know if they bring me a deal I not only will buy through them I will sell through them. I have also been helping some agents who are new to working with investors to show them how to find deals that can be flipped in this ultra competitive market.

As a former Commercial Realtor who now focuses on Syndicating partnerships I am using the same marketing techniques that created  a successful business for me in that field by tweaking the business model towards building relationships with Agents or people looking to passively invest through our firm and making them my customers instead of buyers and sellers.

I know that the best deals usually come through agents and most times if it is a great deal they call a client who they can represent and I want to be that person. My business model involves buying as a principal through anyone who brings me the deal and selling it through them on the exit.

The skills I learned being a Commercial Realtor has been in large part the key to my success. As an agent who works with investors I was exposed to the business models that worked for buying properties. I don’t believe there is anyone who is better than an agent at finding deals because that’s all you do throughout your career. You are exposed to the best business models and can leverage that knowledge to become very wealthy.You look at deals and you represent buyers and sellers and you see what works and what doesn’t.

As a matter of fact I am using that marketing right now to let Realtors know I am a buyer and am looking for Real Estate.

I am continually being asked about “What is the best way to become an investor in real estate?” and my answer

Phase 1 – save up enough money for 6-12 months living expenses, go out and get your Real Estate license

Phase 2 – Work under a successful Realtor who’s focus is on the niche you are interested in owning one day.

Phase 3 – Work you ass off and find as many investors to find deals for and pay attention to the successful ones.

Phase 4 – Start finding investors that will allow you to put in some or all of your commission on the deals you find and ask to participate as much as possible even if you aren’t getting paid for that portion. This is an investment in yourself and like all good investments you will be rewarded heavily in the future.

Phase 5 – Build relationships with clients and earn there trust. These clients and your friends and family will most likely be your money source for your future deals.

Phase 6  – Work your but off to learn the business by working for successful investors finding them deals.

Phase 7 – Transition out of the brokerage business to focus full time on your investments if this is what you enjoy doing. This is the phase I am in but you may find out that being an investor is not always fun and may decide that you like being a Realtor instead.

If you work with investors

So if you are a Realtor or wholesaler give me a call if you find a great deal.

Here are a few reason why you may want to consider working together.

•    I need to buy 3 properties by June 1st
•    I make quick decisions and know what I want – Anything in San Diego $300,000 or less that we can re sell for a profit. I also understand 99% of the deals don’t work but I also know I am successfully finding ones that do work through realtors like yourself who know a particular market and a good deal when it hits the market.
•    I value your advice and feedback but I am not going to blame you if the numbers don’t work out the way you thought on the back end. I am a big boy and if I make a decision to buy it is because I believe in the numbers also. It doesn’t mean I don’t make mistakes it means that I have done enough of these deals that I know mistakes happen and its part of the business.
•    I have access to the MLS and the Sentry system. That means you never have to drive me around or do a bunch of homework for me. I am capable of doing it myself, the best use of your time is to find deals we can work on together and then find more.
•    Quick decisions, no financing contingencies, I can close as quick as needed. As an example to make a deal work this week I offered a 4 day escrow and waived my physical inspection upon acceptance.
•    My company has a general contractor’s license so we understand what’s needed and are capable of just about anything.
•    If I buy through you I sell through you
•    I am open to other possibilities but can’t make as quick of decisions if it is something new to me. On the other hand this is a fast changing market and I need to be open to other opportunities.

For the most updated information & news on real estate & Gabhart Investments go to our facebook & twitter pages

ps. click here to like us on facebook

 & Here to follow us on twitter

 

Statistics on how people are flipping properties in southern california

Here are some slides that I was given permission to use from The Norris Group from the presentation that was put on this week.

I thought it was very interesting to see how there clients were successfully buying and flipping deals in Southern California.

For the most updated information & news on real estate & Gabhart Investments go to our Facebook & twitter pages

Please click here to like us on Facebook

& here to follow us on twitter

 

30 Day property buying challenge

Okay originally I was planning on buying 2 properties in May and recorded this video towards the end of April. In these series of videos, I walk you how and what I plan to do to accomplish these buys. I will keep you posted with my progress.

Intro Video 1 – Buying 2 Flips in 30 Days

Video 2 – Relations with Realtors