VALUEXPOSE

WANT TO GET INTO COMMERCIAL REAL ESTATE? 

Here’s how to successfully break-in using stunning new technology

Just out of college, I was determined to build my wealth in real estate.  It was daunting when faced with the bodies of knowledge I had to master in order to be successful, i.e. investment analysis, appraisal standards, brokerage, financing, risk analysis, construction management, financial feasibility, market studies, etc. 

After getting a real estate license my freshman year of college and selling houses in-between semesters, I started interviewing successful developers and real estate investors of income producing properties and subdivisions. 

The most constructive advice I received from many of my interviews was “you’ve got to make your money on the buy not the sell”. This cryptic sage message wasn’t exactly clear to me and I pressed them for explain more in detail. They told me this advise entails a body of knowledge that only comes with professional training and experience. 

So, my junior year of college, I started working for a local MAI designated appraiser with the intent on gaining the professional training I needed. After two years of appraising single family houses, I was promoted to a commercial appraiser when I graduated from college. Now I had better access and information due to my appraising commercial developments, major remodeling projects, and subdivisions at various stages of development. 

Over the years, I Learned how developers “made money on the buy” by using time consuming financial spreadsheets to lessen their risk of financial loss (this was before computers!). 

After receiving my MAI appraisal designation, I personally began developing and remodeling commercial real estate. I used the secrets I learned in my professional training as well as the secrets I coaxed out of the successful developers in which I had appraised their proposed projects.  

Even when computerized spread sheets became available, the task of “crunching the numbers” before I purchased a property for development or remodeling was tedious, time consuming and mistake prone unless I heavily reviewed my work. 

As an appraiser, I continued my appraisal practice charging clients enormous fees to produce these kinds of investment analysis to early stage developers with proposed projects. Client projects ranged from:

• Developing income producing properties or subdivisions (including condo projects) from vacant land

• Remodeling or finishing existing income producing properties or subdivisions (including condo projects)

• Purchasing existing income producing properties that presently were NOT at stabilized occupancy and/or market rent(s)

• Purchasing existing income producing properties that were presently at stabilized occupancy and at market rent(s)                            

Now technology has advanced to such a advanced degree that complicated investment financial spreadsheets are available on-line. Software developers have refined the user experience making these once complicated models easy to use and easy to interpret the results. 

All the financial models have been constructed and reviewed to meet generally accepted appraisal standards. I just wish I had access to this technology when I was first starting out in commercial real estate. It would have saved me years of professional training and experience needed to create these models myself. I could have avoided the many financial mistakes I made over the years keeping me from fast tracking my present net worth and financial independence. 

If you’re starting out in commercial real estate or even if your a seasoned pro, take a look at the technology advances that have recently been developed for CRE by pressing HERE.  Not only will this technology save you thousand of dollars in professional fees for in early stage investment valuation and analysis, but will also prevent you from making critical financial mistakes. You will also be able to constantly update your analysis with a single click of your mouse as more reliable data becomes available and economic conditions change. 

This technology will enable you to “make your money on the buy, not the sell” by providing you the initial and on-going game plan for your proposed residential or commercial project or purchase.  

Here’s the best part. Even if you hire a professional appraiser or analyst, they cannot indicate to you if your property’s current market value or proposed finished market value has entered a dangerous bubble. 

No matter what your property’s current market value might be, automated investment analysis and machine learning can now tell you if your property’s current or proposed value is in a bubble. This new value sustainability feature uncovers hidden risks that, until now, have never been available to the general public and unsuspecting buyers. 

Click HERE to see examples of sample reports of automated investment valuations and analysis for various property types at different stages of development. No matter if your a buyer/seller, developer, remodeler, broker, lender or investor, you will eliminate the severe learning curve, expensive initial professional costs, and the excessive time it takes to receive a similar report from a professional.  You will also avoid the hidden risks of real estate bubbles that have never been available before. 

Remember, with proper planning using this new technology, you will be making your money on the “buy” not the “sell” similar in a way the most successful developers plan their proposed developments and commercial property purchases.