Name: Crushing It in Apartments and Commercial Real Estate
Rating: 4.2 (137 reviews)
Author: Brian Murray

What’s in it for me? Plunder a real-estate professional’s warehouse of wisdom.

To many, real estate appears to be the perfect investment. Even when the financial sector is in turmoil, property prices always seem sure to bounce back, allowing real-estate owners to relax while other investors panic and lose their life savings.

So why doesn’t everyone simply invest in property? Well, as with most things, investing in real estate isn’t as simple as it seems. There are many pitfalls, and it’s as common for a property to represent a financial drain as it is for it to lead to financial gain.

This doesn’t mean that real estate can’t make you wealthy. It most certainly can. However, there are many important things to consider, both before and after you make your first investment – and that’s where these blinks come in. They’ll provide you with a wealth of real-estate wisdom from a property-owning pro who learned all his lessons in the field.

You’ll also find out

why you should put your office in the basement;
why property owners aren’t passive; and
how to make your property feel like home.

Before investing in real estate, you need to do the numbers and ensure that the property will bring in cash.

You’ve probably had the thought. If only you could buy a piece of valuable property, your money problems would be solved forever. And yes, investing in commercial real estate can lead to considerable wealth – but there’s a bit more to it than buying a few apartments and awaiting the inevitable blizzard of banknotes.

First and foremost, you’ve got to get a handle on a few financial concepts, the most important of which are net operating income and cash-on-cash returns.

A property’s net operating income is easy to calculate. Simply take the income the property will generate for you in a year – things like the rent you’ll receive from tenants, the money generated by the laundry facilities and the fees levied on pets. Take this number and subtract the property’s yearly costs – for example, property taxes and maintenance expenses. The difference between these two numbers is the net operating income.

Now that you’ve got this number, it’s time to calculate the property’s cash-on-cash returns. To do this, take the net operating income and divide it by the amount you’ve invested in the property upfront. Now multiply this number by one hundred and put a percentage sign after it. That percentage is the property’s cash-on-cash returns, and the higher it is, the better.

If you want to expand your portfolio, you’ll need to focus on investments that carry little risk. And the properties that provide an instant cash flow are usually the least risky. This is why knowing these numbers is of the utmost importance.

By investing in properties with large cash-on-cash returns, you’ll increase your cash flow, thus reducing the risk inherent to all investments. In the real-estate game, cash is your lifeboat. Mistakes will be made, and unforeseeable events are as inevitable as high waves on the open sea. It behooves you to have a means of staying afloat.

When making your first real-estate investment, watch your spending and don’t quit your day job.

Once, an eager young investor shared her plans with the author, Murray. She confided that, after buying her first piece of commercial real estate, she planned to say goodbye to her current job and splurge on some luxuries. She looked forward to an array of purchases: a new car, new office space and a set of elegant business cards.

The author could only look askance at these plans, however, because he knew something that she didn’t: investors entering the real-estate market should do everything in their power to avoid spending money.

Commercial property should be treated as a business, with the investor serving as the manager.

There’s a myth surrounding real-estate investment. It goes something like this: once you buy a property, all you have to do is sit back, relax and watch the money pour in.

This myth took shape over hundreds of years. For centuries, the nobility and landed gentry passed land from generation to generation, pocketing the money from tenants and employing people to manage their properties for them. More recently, scamsters promoting get-rich-quick schemes have perpetuated the myth that property is an investment that will generate a passive income.

Find a nonmonetary purpose behind your real-estate investment and organize your business values around it.

Money doesn’t equal motivation. So before you buy your first property, take a look in the mirror and ask yourself a few questions. What will drive you to meet the highest standards? How will you stay motivated to outperform the competition? One thing is certain – succeeding in the real-estate market will demand a great deal of effort and time, as well as an unwillingness to quit.

What will keep you going?

Kernaussagen in Crushing It in Apartments and Commercial Real Estate

Worum geht es in Crushing It in Apartments and Commercial Real Estate?

Crushing It in Apartments and Commercial Real Estate (2017) provides a peek at the secrets behind the author’s phenomenal success in the real-estate market. Full of readily applicable advice for prospective investors, the book will also help established property owners make the most of their real estate. Along the way, the author shares examples from his many years working in the industry.

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Zusammenfassung von Crushing It in Apartments and Commercial Real Estate

Crushing It in Apartments and Commercial Real Estate
in 6 Kernaussagen verstehen

What’s in it for me? Plunder a real-estate professional’s warehouse of wisdom.

Before investing in real estate, you need to do the numbers and ensure that the property will bring in cash.

When making your first real-estate investment, watch your spending and don’t quit your day job.

Commercial property should be treated as a business, with the investor serving as the manager.

Seek out suitable tenants and make their rent slightly lower than the market rate.

Find a nonmonetary purpose behind your real-estate investment and organize your business values around it.

To grow in the long term and to create value, hold on to your properties for as long as you can.

Kernaussagen in Crushing It in Apartments and Commercial Real Estate

Einleitung

Before investing in real estate, you need to do the numbers and ensure that the property will bring in cash.

When making your first real-estate investment, watch your spending and don’t quit your day job.

Commercial property should be treated as a business, with the investor serving as the manager.

Seek out suitable tenants and make their rent slightly lower than the market rate.

Find a nonmonetary purpose behind your real-estate investment and organize your business values around it.

To grow in the long term and to create value, hold on to your properties for as long as you can.

Worum geht es in Crushing It in Apartments and Commercial Real Estate?

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Zusammenfassung von Crushing It in Apartments and Commercial Real Estate

Crushing It in Apartments and Commercial Real Estate in 6 Kernaussagen verstehen

What’s in it for me? Plunder a real-estate professional’s warehouse of wisdom.

Before investing in real estate, you need to do the numbers and ensure that the property will bring in cash.

When making your first real-estate investment, watch your spending and don’t quit your day job.

Commercial property should be treated as a business, with the investor serving as the manager.

Seek out suitable tenants and make their rent slightly lower than the market rate.

Find a nonmonetary purpose behind your real-estate investment and organize your business values around it.

To grow in the long term and to create value, hold on to your properties for as long as you can.

Kernaussagen in Crushing It in Apartments and Commercial Real Estate

Einleitung

Before investing in real estate, you need to do the numbers and ensure that the property will bring in cash.

When making your first real-estate investment, watch your spending and don’t quit your day job.

Commercial property should be treated as a business, with the investor serving as the manager.

Seek out suitable tenants and make their rent slightly lower than the market rate.

Find a nonmonetary purpose behind your real-estate investment and organize your business values around it.

To grow in the long term and to create value, hold on to your properties for as long as you can.

Worum geht es in Crushing It in Apartments and Commercial Real Estate?

Bestes Zitat aus Crushing It in Apartments and Commercial Real Estate

Wer Crushing It in Apartments and Commercial Real Estate lesen sollte

Über den Autor

Kategorien mit Crushing It in Apartments and Commercial Real Estate

Ähnlich wie Crushing It in Apartments and Commercial Real Estate

Leute mochten auch

Entdecke den Blinkist Katalog

Beliebte Titel

Meistgeklickte Kategorien

Beliebte Themen

Angesagte Themen

Ausgewählte Titel

Crushing It in Apartments and Commercial Real Estate
in 6 Kernaussagen verstehen