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    Investment Real Estate Analysis: A Case Study
    Investment Real Estate Analysis: A Case Study
    Investment Real Estate Analysis: A Case Study
    Ebook45 pages30 minutes

    Investment Real Estate Analysis: A Case Study

    By Jeffrey Roark and Jeff Rohde

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    About this ebook

    It's a well kept secret in buying investment real estate that you are almost always buying the seller's problem.

    Think about it this way:  If a property has good tenants, is for the most part trouble-free and is cash flowing, why on earth would the current owner want to sell?  Sure, there are some legitimate reasons, but even those innocent sounding excuses for selling can hide a hidden agenda.  It's safe to say that 99% of the time the new owner is going to face problems with their property purchase, probably sooner rather than later.  

    Now, the fact that problems may exist doesn't mean an investor shouldn't buy a property.  For example, let's say the current use for a building is a multi-tenant office property with a high vacancy rate and you (as the buyer) want to turn it into offices for your business.  Or an apartment building needs significant capital improvements, such as a roof repair or replacement of a majority of the HVAC units.  Or a retail property sits very close to a school or to a church, a situation that current zoning laws may prohibit your leasing to certain types of tenants, thereby reducing the number of potential business types you can market your vacant retail suites to.

    The key is to accurately identify the existing and potential problems, and the likely costs associated with solving those problems.  In The Real Estate Property Management Guide I discuss all aspects of property management, including the steps to take when considering what type of investment property is right for you.  After all, just because you can buy or finance an acquisition doesn't mean that you should actually invest in it.

    In this book, Investment Real Estate Analysis: A Case Study, we drill-down on the specific analysis used by all professional investment real estate brokers and buyers to determine the strengths and weaknesses - and to identify the hidden opportunities - when deciding how to position a piece of real estate for sale.  While this case study is written from the seller perspective, as a potential buyer you should always apply these same steps yourself to gain a thorough understanding of what you are buying - before you sign the purchase contract!

    This case study is based on an actual activity and will take you inside the mind of a professional real estate investor.  While the property type being analyzed is a single-tenant, free-standing office building and while the specific pricing recommendations may not apply to your market or property, the same techniques can be used for any income producing or owner-occupied real estate.

    Specific topics covered in this concise book include Site Analysis, Skill & Knowledge Sets, Sales Comparison Analysis, Lease Comparison Analysis, Regional Analysis, Neighborhood Analysis, Linkage Analysis, and the Annual Property Operating Data Report.

    LanguageEnglish
    PublisherJeffrey Roark
    Release dateOct 12, 2015
    ISBN9781519949103
    Investment Real Estate Analysis: A Case Study
    Author

    Jeffrey Roark

    Writing under the pen name Jeffrey Roark, Jeff Rohde has over two decades of extensive experience actively working in and writing about all aspects of the real estate industry: Residential, multi family, commercial, leasing, renting, selling, group investing, business brokerage and property management. Jeff began his real estate career over 25 years ago in the Midwest by investing primarily in own investment portfolio.  Over the past 15 years he has personally brokered tens of millions of dollars worth of real estate sales and lease transactions for his clients - and for his own portfolio - in retail, office, industrial, single-family and multi-family residential income properties, and in raw and subdivided land.   Jeff Rohde is a Certified Commercial Investment Member.  The CCIM designation is held by only 15,000 commercial and investment real estate professionals worldwide and is the highest professional certification one can earn in commercial investment real estate. In addition to over 25 years of experience working in investment real estate, Jeff has written several very popular real estate books under the pen name Jeffrey Roark - The Basic Property Management Guide, Investment Real Estate Analysis: A Case Study, How To Find & Keep Great Tenants, and How To Make Money In Property Management.  These can be found through all of the major book distributors in both ebook and print formats. Jeff also operates J Scott Digital, where he specializes in content creation, editing and proofreading in the real estate, finance and investment, and general business sectors for clients around the globe.   To learn more about Jeff Rohde and to view his weekly blog posts visit JScottDigital.com

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      Book preview

      Investment Real Estate Analysis - Jeffrey Roark

      Overview

      ––––––––

      It’s a well kept secret in buying investment real estate that you are almost always buying the seller’s problem.

      Think about it this way:  If a property has good tenants, is for the most part trouble-free and is cash flowing, why on earth would the current owner want to sell?  Sure, there are some legitimate reasons, but even those innocent sounding excuses for selling can hide a hidden agenda.  It’s safe to say that 99% of the time the new owner is going to face problems with their property purchase, probably sooner rather than later. 

      Now, the fact that problems may exist doesn’t mean an investor shouldn’t buy a property.  For example, let’s say the current use for a building is a multi-tenant office property with a high vacancy rate and you (as the buyer) want to turn it into offices for your business.  Or an apartment building needs significant capital improvements, such as a roof repair or replacement of a majority of the HVAC units.  Or a retail property sits very close to a school or to a church, a situation that current zoning laws may prohibit your leasing to certain types of tenants, thereby reducing the number of potential business types you can market your vacant retail suites to.

      The key is to accurately identify the existing and potential problems, and the likely costs associated with solving those problems.  In The Real Estate Property Management Guide I discuss all aspects of property management, including the steps to take when considering what type of investment property is right for you.  After all, just because you can buy or finance an acquisition doesn’t mean that you should actually invest in it.

      In this book, Investment Real Estate Analysis: A Case Study, we drill-down on the specific analysis used by all professional investment real estate brokers and buyers to determine the strengths and weaknesses - and to identify the hidden opportunities - when deciding how to position a piece of real estate for sale.  While this case study is written from the seller perspective, as a potential buyer you should always apply these same steps yourself to gain a thorough understanding of what you are buying - before you sign the purchase contract!

      This case study is based on

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