Doug Marshall - Mastering the Art of Commercial Real Estate Investing: How to Successfully Build Wealth & Grow Passive Income from Your Rental Properties

How to Successfully Build Wealth & Grow Passive Income from Your Rental Properties

DOUG MARSHALL, CCIM

NEW YORK

LONDONNASHVILLEMELBOURNEVANCOUVER

Mastering the Art of Commercial Real Estate Investing

How to Successfully Build Wealth and Grow Passive Income from Your Rental Properties

2020 Doug Marshall, CCIM

All rights reserved. No portion of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any meanselectronic, mechanical, photocopy, recording, scanning, or otherexcept for brief quotations in critical reviews or articles, without the prior written permission of the publisher.

Published in New York, New York, by Morgan James Publishing. Morgan James is a trademark of Morgan James, LLC. www.MorganJamesPublishing.com

ISBN 9781642790153 paperback

ISBN 9781642790160 eBook

Library of Congress Control Number: 2018936396

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To all the real estate investors Ive met through the years who have struggled with building wealth and growing passive income from their rental properties. This book is for you.

In 1999, Doug Marshall received the prestigious CCIM designation, which many consider the PhD of commercial real estate. A Certified Commercial Investment Member (CCIM) is a recognized expert in the disciplines of commercial and investment real estate. The designation is awarded by the CCIM Institute. Today almost 70 percent of designees hold the title of owner, partner, principal, or president, representing an exclusive worldwide referral network of thirteen thousand members in thirty countries. CCIMs must be proficient in the areas of investment analysis, market analysis, user decision analysis, and financial analysis for commercial real estate. Of the more than 150,000 commercial real estate professionals in the United States, only an estimated 7 percent hold the CCIM designation.

How do you become good at something?
Firstly, learn how it is done. Secondly, learn how others do it.
Then do it your own way.

Kyos Magupe, philosopher

D o you want to supplement your current income by investing in commercial real estate (CRE)? Better yet, would you like to someday quit your day job and devote your energies exclusively to your rental properties? If thats your plan, then this book is for you. This book is for the commercial real estate investor who is either new to investing or has been at it for a while but realizes he or she needs help learning the time-proven principles of real estate investing.

With more than thirty-five years of experience financing real estate, including a decade of personally investing in rental properties, I have learned how to successfully invest in commercial real estate, sometimes unfortunately by doing it the hard way. My clients and I have learned the dos and donts of CRE investing, but there is no reason you have to go through the same learning process of trial and error. By sharing my knowledge with you, the hope is that you can avoid the pitfalls Ive made so you can grow your CRE investments more successfully and with significantly fewer setbacks along the way.

I have divided this book into four sections: investor-owned commercial real estate. Each section is filled with real-life examples and common sense advice on how to build wealth and grow passive income from your rental properties.

For example, in the buying section of the book, youll learn:

• Why buying real estate is better than owning any other type of investment.
• What the real estate market cycle is, and what phase it is currently in.
• What the six immutable laws of real estate investing are.

In the financing section, I will explain, among other things:

• How you can get the best possible loan for your property.
• What six things you need to do to make your property lender friendly.
• What nine underwriting guidelines lenders use to qualify borrowers.

In the managing section, I will disclose:

• What the number one mistake most property owners make managing their apartments.
• What are the three most important things to consider when choosing a property management company.
• What seven hidden costs of managing apartments can cost you big-time.

And finally, in the selling section, you will discover:

• What five things you must do before you list your property for sale.
• Three traps on the purchase and sale agreement that the seller should negotiate away.
• What the benefits are of doing a 1031 Exchange.

As an investor myself, I have written Mastering the Art of Commercial Real Estate Investing for those investors needing assistance getting started. I believe this book will go a long way toward helping you take charge of your future. If you like easy-to-follow, solid advice and step-by-step instructions, youll love this life-changing guide. You can bolster your income and begin the process of building wealth today!

From my many years of commercial real estate experience, Ive come to the realization that those who excel at CRE investing understand there is a lot more to it than crunching the numbers. Yes, you need to have a firm grasp on how to value real estate, how leveraging a property with debt will influence the propertys return, and so on. But CRE investing is much more than that.

Ive come to realize that the most successful real estate investors Ive had the privilege to have as clients develop a subjective, intuitive feel about a property. They dont look at the potential acquisition as it is at the moment. Rather, they create a vision for the property. They envision what it would be like if it were renovated and managed correctly. They also realize how important it is to understand market trends, perceive how a neighborhood is trending, develop an awareness of where we are on the real estate market cycle to name just a few factors worth knowing. These parameters are far more subjective than objective in scope. And that is why I titled my book Mastering the Art of Commercial Real Estate Investing . This type of investing is genuinely more of an art than a science.