Commercial Real Estate Investing for Dummies

http://www.commercialpropertyadvisors.com/dummies Commercial real estate investing for dummies by the author of the book Commercial Real Estate Investing for Dummies

20 thoughts on “Commercial Real Estate Investing for Dummies”

  1. Hello Peter and all, I was planning to purchase a fairly inexpensive duplex and dumping everything I can on the principle in order to use the equity for a down payment on a commercial property. Is this a decent method in your opinion? I think it would build a larger down payment much quicker. Any advise would be greatly appreciated..thank you very much…Josh

  2. how do you determine the expenses before you buy? what sources to get estimates on utilities, accounting, property management, etc.?

  3. Hey Mr. Harris is it possible to take a vacant piece of land that is already zoned commercial; get it under contract so you control it, then take it through the approval process to increase the value, then after that see if a gas station wants to develop on it in that given area? Thanks in advance!!

  4. Sir your videos are knowledgeable as well as practical so plz upload on weekly basis. plz share few deals in your career were you lost & were you gain

  5. You use a 30 year assumption on the mortgage. Every lender I talk to wants no more than 20 years amortization with a 5 year term. Am I talking to the wrong lenders?

  6. Great video, Mr. Harris.

    I have just started leaning about Real Estate investing. I want to flip my first property within a month. I have been reading various books on the subject and I recently joined an Investing group locally.

    Do you have any clear, straight-forward advice on how to get funding for a beginner who has no money? I would appreciate that.

  7. Oh and for the nay Sayers with the calculations … A banker is rounding to the nearest thousandth in the credit memo for a loan decision. So anything else is negligible and discarded. For instance $57,170 would be $57M in expenses. $33,372 would be $33M for Debt service (principal and interest). Gross adjusted income of $113,400 would be $113 – $57 in expense = $56 NOI (Net Operating Income). Cash flow would add back interest and depreciation expense when calculating a DSCR or the Debt Service Coverage Ratio, which in commercial real estate lending is a key component in making the a decision. So basically the entire NOI is considered cash flow by a banker. $56M / $33M = 1.70x DSCR. As a side note, Bankers use "M" to indicate Thousand and "MM" to indicate Million.

  8. Pretty good video but when you used the word "evaluate".. I thought you were calculating for value. I was curious of how you were going to explain the market capitalization rate to get what the appraised value would be using the income approach. Had you mentioned "cash flow" in Lieu of "evaluation" .. I would have been right with you. This would be a killer property considering the DSCR would be 1.7x .. However, the rate may be conservative but I would have based the term on a 20 yr am .. 30's a bit more liberal. Good video though..

  9. Can someone help me on how to get the mortgage repayment of 2478? How would you calculate this using a normal calculator?

  10. Good job on summing things up here. I'm glad you used realistic expenses here. A 10% vacancy and 40-50% expense ratio is very common here in New Brunswick, Canada.

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