| p>"There are many paths to the top of the mountain, | | | | 3. Commercial Investment Property MARKET |
| but the view is always the same" -- Chinese Proverb | | | | ANALYSIS |
| Last Monday I was on the phone with a beginning | | | | The next step is to do a thorough analysis of the |
| apartment investors. She said she really wanted some | | | | market in your area. How many apartments are on |
| type of shortcut or tool to help her find and purchase a | | | | the market? What are the CAP Rates for your area? |
| great apartment property - one that would be right | | | | What is the average number of days that buildings are |
| FOR HER. | | | | on the market? |
| We all have different ideas on what a good deal is, | | | | 4. INVESTOR PERSONAL ANALYSIS And Team |
| don't we? | | | | Building...You Need To Get These Things Done FIRST. |
| This is true at all different levels of investment. What | | | | Identify the people that will be on your personal |
| may be a great deal for some, may be a bad deal for | | | | investment "Dream Team" and what each of their |
| the next person. It really comes down to the fact that | | | | roles will be in your investment business. What |
| we all need great profits from a property that is right | | | | attorney, appraiser, inspector, accountant, and |
| FOR YOU! | | | | commercial brokers will you use is simply the tip of the |
| I mean we ALL want to make money and build wealth | | | | iceberg in this section. |
| through owning commercial real estate properties but | | | | 5. Investment Property Analysis |
| how do we now which kind of properties we should | | | | This is where you will go into the details of each |
| buy, what size, what location, what condition, etc.? | | | | property you are considering for purchase. It is an |
| All of the investors I work with begin by filling out and | | | | in-depth investment analysis of the profitability of the |
| Apartment Investing Business Plan. The template will | | | | property. You should also identify andy growth |
| walk you through step-by-step in writing up your | | | | opportunities for cash flow, and reduction opportunities |
| business plan, and then taking action to achieve your | | | | for expenses. |
| investment goals. | | | | 6. STRATEGY: Recommended For Each Apartment |
| Here are the essential elements you need to include in | | | | Property That You Own And For Your Overall |
| your Apartment Investment Business Plan: | | | | Apartment Holdings |
| 1. Mental Toughness And Commercial Investment Real | | | | Finally, in the Strategy section, you will want to identify |
| Estate. | | | | exactly how much money you would like your |
| This step will define what you want to own and what | | | | investments to earn over the next X months. |
| you want to achieve as an apartment investor. What | | | | Determine how many units you will own and break |
| do you want to achieve as a result of owning and | | | | these down into sub-steps to achieve your goals. |
| profiting from commercial investment real estate? | | | | Developing a solid Apartment Investing Business Plan |
| What BENEFITS do you want as a result? What Kind | | | | does not have to be complicated, nor take much time. |
| Of Commercial Real Estate Do You Want To Avoid? | | | | Contrary to popular believe, you do not need to spend |
| 2. The Three Properties Per Week Rule. | | | | months on this step before you begin. However, one |
| If all you do was to take a look at three properties per | | | | of the biggest mistakes I see investors make is not to |
| week you will have accumulated millions of dollars in | | | | create a business plan before getting started. Be sure |
| commercial real estate in less than 2 years, on | | | | that you do not make this mistake and take the time |
| average. Getting this kind of market exposure is | | | | necessary to plan ahead for maximum profits and |
| important - especially for beginning investors. | | | | opportunities. |