Wealth Opportunities in Commercial Real Estate by Grabel, Gary -- Read -- Imperial Library of Trantor

Index

Cover Contents Title Copyright Dedication List of Abbreviations Introduction Chapter 1: An Overview of the Problem, a Solution, and a Game Plan

The Problem The Solution Four Key Elements in the Solution Concerns about the Solution Acquiring the Skill Set to End the Cycle A Game Plan to Achieve the Solution This Book Is about Center B Properties

Chapter 2: The Basics

Gross Income: The Starting Point Vacancy and Collection Loss: Gross Income Reducers Operating Expenses and Net Operating Income Fair Market Value and Capitalization Rate: What’s It Worth? Gross Rent Multiplier Value per Square Foot versus Reproduction Cost per Square Foot Inverse Relationship between Cap Rate and FMV Initial Determination of Value Leveraged Return and Return on Equity Cash Flow before Taxes (CFBT) Reserves/Impound Accounts Taxes and Insurance Impounds Cap X, TIs, and Leasing Commissions Devil in the Details: Over Simplified Analysis

Chapter 3: Detailed Financial Analysis

Gross Income Vacancy and Collection Loss Operating Expenses Four Basic Types of Leases Nonrecoverable Expenses Time-Frame Assumptions Static versus Active Analysis Compounding Rent Roll Argus Ten-Year Discounted Cash Flow Model Analysis Reflecting 100 Percent Occupancy Reversion Disposition Costs The Time Value of Money: Present Value and Discounted Cash Flow Net Present Value (NPV) Internal Rate of Return (IRR) Conclusions from Argus Analysis and the Hypothetical Facts Analysis Reflecting a Large Vacancy after Purchase Analysis Reflecting a Large Vacancy with a Tenant in Tow

Chapter 4: Lease Analysis

The Importance of Basic Lease Provisions Twelve Key Economic Ingredients in a Lease Frequently Negotiated Lease Provisions

Chapter 5: Real Estate Financing

Sixty to Eighty Percent of the Game Types of Financing What Is the Right Answer to Debt Structuring? Seven Key Factors to Consider in a Real Estate Loan Loan Underwriting Cash-on-Cash Return The Mortgage Loan Application The Pitfalls of Mortgage Lending Negotiable Points of a Loan

Chapter 6: Real Estate Taxation

Income Taxation Real Property Taxation Taxation in the Event of a Refinance Taxation in the Event of a Sale Installment Sale Section 1031 Exchange

Chapter 7: Acquisitions and Dispositions

Focus on Specific Property Types in Specific Geographic Locations Establish Buying Criteria Acquisition Philosophy Governmental Impact Initial Screening The Purchase and Sale Agreement Building a Team Due Diligence Dispositions

Chapter 8: Case Studies

Problem Number 1 Problem Number 2 Problem Number 3 Problem Number 4 Problem Number 5 Problem Number 6 Problem Number 7

Chapter 9: Development or Rehabilitation (Build to a 12 Percent Yield)

The 10 Phases of a Construction or Rehab Project Assessing a Construction Project Developer as Conductor Does the Project Hit Your Minimum Yield? Argus Developer Feasibility or Market Study The Composition of a Feasibility Study Residual Land Value Preleasing Equity and Financing Mechanics’ Liens Liability under the Construction Loan Design and Construction Drawings Governmental Approvals Covenants, Conditions, and Restrictions (CC&Rs) Ground Lease Restrictions Construction of Improvements in a Ground-Up Development Inspections Insurance Decisions, Decisions, Decisions Communication, Communication, Communication Graphic Time Line Project Operating Costs Lender’s Disbursement Form Change Orders Rehabilitation Project Construction of Improvements in a Rehab Project: Decisions, Decisions, Decisions Rehab Project: Communication, Communication, Communication Summary

Chapter 10: Marketing, Leasing, and Management

Definition of Marketing, Leasing, and Management Marketing Leasing Strategy Management Management as a Business Conclusion

Chapter 11: Partnership Structuring and Deal Restructuring

Partnership Structuring Securities Issues Fifteen Key Structuring Issues Debt Restructuring Borrower’s Proposed Terms Lender’s Counterproposal

Chapter 12: Keeping the Money

Planning Fractional Interests Estate Planning Checklist

Acknowledgments About the Website About the Author Index