Commercial Investment Property Articles
Dirty Four Letter Word Of Commercial Real Estate Investors
Darin Garman, CCIM
Copyright 2006 All Rights Reserved
A big mistake a lot of people make when it comes to investing in commercial
investment property is that they forget one simple thing:
Its All About The Math!
Not complicated math either. It really comes down to rents less expenses
less any loan payments equals cash flow in our pockets.
Then, add loan principal reduction AND appreciation as icing on the cake of
That is Garman Math 101.
Should be your Math too.
Always keep in mind that it is not about the pretty color of the building,
not about whether the building has garages or balconies or a TV room or new
maintenance free siding.....
Its all about the numbers baby!!
So, your first job in examining a potential "deal" needs to be the numbers.
Whether they have a swimming pool is insignificant - it the numbers.
You see, the sad thing is when an owner plows thousands of dollars in
improvements into a property and thinks he will get his costs right back. No
way. I see this happen all the time. Why? New siding did not increase his
net income. It made the property look better but his cash flow is still the
Numbers, numbers, numbers...
More on this next week.
Darin Garman, CCIM
Apartment and Investment Property Specialist
If you have not taken advantage of my special
limited time offer for a 2 month complimentary "test drive" of the CIPOA
Platinum Club Membership, here is another opportunity to see what you have
Free 'Test Drive' of The Worlds Only
Commercial Investment Property Owners Association
FREE 7-Part Commercial Property
Sign Up Today For My FREE Online Course where I reveal
how you can profit
using non-traditional ways of analyzing and investing and owning commercial
investment real estate. Plus you will discover the incredible, proven inside
secrets that will assist you in avoiding the mistakes that cause many to lose
thousands at the closing table, and don't even know it.
Fill out the form below
We hate spam as much as you do. Your information will never
be rented, traded, or sold.
Back To Top |
Apartment Property Buyer Info |
Apartment Property Seller Info |
Commercial/Investment Property Buyers Info |
Commercial/Investment Property Sellers Info |
Realty Listing |
Client Remarks |
Contact Me |
Copyright 2006 Darin Garman, CCIM, All Rights Reserved.
Apartment and Commercial Investment Property Specialist