CS-3: Acquiring Commercial Real Estate

What is it?

• A 2-day seminar, the third of a 4-part commercial seminar and industry training series
• Based on the book written by the presenter, Joseph Petrole, MAI, CCIM

This information packed 2-day seminar provides a complete overview of why investors buy commercial real estate as well as how to buy it. Market savvy investors who are building wealth acquiring commercial real estate approach the task as a business person would; they begin with a clearly defined purpose of the investment and have a clearly defined plan to getting their deals done!

Both Investing fundamentals and “must know” advanced methods, techniques and tools that successful investors use are covered in a clear and useable way that will immediately increase your value to your clients, allow you to win more business and get more commercial real estate transactions done.

Based on years of successful professional investment experience in purchase transactions, buyer due diligence, valuation, financing and advisory services in deals ranging from $2,000,000 to over $500,000,000, gained at leading asset management, valuation, brokerage and investment banking firms, this information packed seminar presents an in-depth discussion of a proven 8 Step Process to buy commercial real estate like a seasoned “professional”. Presented in a logical step-by-step approach, this seminar literally walks you through all the “must-know” 8 steps to buy property, in the order in which they will likely arise. With just the right balance between what is “real world practical” and what is academic, this unique 8 Step Process provides a complete planning guide along with numerous checklists, forms, comments, cautions and suggestions that will leave you fully prepared. You will obtain a clear understanding of the right way to buy commercial real estate that will meet investments goals as well as get financed so that you can put it into practice immediately.

Introductory, intermediate and advanced purchase concepts are explained in a step-by-step, clear and useful way, with in-depth discussions of the 8 Step Process to buy property: (1)figuring out what type of investor you are and what your goals are, (2) deciding how you are going to pay for it, (3) who should be on your investment “team” and why, (4) how to take your first look at a property and then decide if you should even make an offer, (5)how to make an offer, (6) the art and science of negotiations and terms, (7) the right way to inspect and investigate the property you want to buy,(8) building flexibility into a contract to assist in negotiating leverage and closings. There are also three “break out” discussions. First, with the goal of insuring that your offer is compelling to the seller, are Letters of Intent (LOI), including variations in sections of an LOI, and a comparative review of three actual LOI’s for the same property, with a discussion of their positive and negative attributes. Second, with the goal of insuring that you understand the financing process and get the right loan at the best terms, are lender financing Loan Commitments, and a comparative review of three actual Loan Commitments for the same property, with a discussion of their positive and negative attributes. Third, with the goal of insuring that you know what to look for, ask the right questions, buy only the right properties, at the right price and at the right terms, is a review of a comprehensive “Buyers Due Diligence Checklist”, which covers the 12 “must know” areas of property “due diligence”, addressed by more than 250 questions. The “Buyers Due Diligence Checklist”, has enough information for you to create a “custom tailored” questionnaire which will then perfectly fit your Property Transaction in a practical and useful way, which will allow you to discover possible points of negotiations, price adjustments and financing considerations.

Who Should Attend?

Anyone who has an interest in how successful commercial real estate transactions get done must attend this seminar! If you are considering buying commercial property, already own commercial property or are a broker or a counselor, then this seminar is designed for you. If you want to gain the mindset of a seasoned investment professional, which will increase your skill set, impress your clients and let you do more commercial real estate transactions, then you must attend this seminar! The combination of the 8-Step Buying Process, along with the review of LOI’s, Loan Commitments and the 12-Part Buyers’ Due Diligence Checklist provide a “bullet-proof” framework to successfully buy properties that meet the buyer’s investment objectives, that will actually get financed, and will close with resultant transaction commissions earned. Investment knowledge is financial power and with it you will rise above your competition, impress your clients, and earn more business by increasing your professional value and worth. This seminar has been attended by bankers, brokers, investors, property owners, joint venture partners, underwriters, loan officers, accountants, appraisers, CPA’s, attorneys, investment bankers, hedge fund managers, financial officers, investment officers, real estate counselors, and property and investment managers.

Benefits:

Based on the book which was written by the presenter, Joseph Petrole, MAI, CCIM, a real estate industry insider with more than 35 years of experience, this manuscript is chock full of information, with end of chapter multiple choice and “number crunching” questions, and an addendum with discussion questions and actual examples of purchaser Letters of Intent, Financing Loan Commitments and a 12 part buyers Due Diligence Checklist.

• Essentials of Real Estate Investments
• Financial Architecture of Real Estate: Cash flows, projections, discounting
• Similarities between real estate, annuities and zero coupon bond investments
• Cap Rate math made easy: the “IRV” Formula
• The 8-Step Buying Process: Have a Plan to Get Your Deal Done
• Do you know your investment? The Investment Scoreboard Test
• Investment Basics: Safety, Income an Growth
• Establishing Your Investment Objectives
• Do you know what kind of an investor you are? Investment Sentiment
• The Eight Considerations in Establishing Your Investor Sentiment
• Matching your Sentiment, Objectives and Expectations with Investments
• Investment Cash Flows, Values and Rates of Return
• How Real Estate Market Cycles affect Investments
• Thinking about Various Risk-Return Scenarios: Real Estate Risk Roulette
• Putting It All Together: The Investment Sentiment Matrix
• How Money is put together to buy Real Estate: Equity and Debt
• Types of Financing to buy Real Estate
• Building your investment team: Consultants and Advisors
• Taking your first look at a property: Just Answer 4 Questions
• Taking a second look at a property: 5 Must Have Characteristics
• When to Contact an Owner: Letters of Intent
• Types of Due Diligence: The 250 Question Check List
• Making A Decision: Seeing beyond the Numbers to the Big Picture
• How Closings Work

CS-4: Building Wealth with Commercial Real Estate

What is it?

• A 2-day seminar, the fourth of a 4-part commercial seminar and industry training series
• Based on the book written by the presenter, Joseph Petrole, MAI, CCIM

This information packed 2-day seminar provides a complete overview of why investors buy commercial real estate as well as how markets work to assist investors in achieving their wealth building goals. Market savvy investors understand that it’s not just about a property’s “location, location, location” but more importantly it’s about market “timing, timing, timing”. Both Investing fundamentals and “must know” advanced market and forecasting trends that successful investors use are covered in a clear and useable way that will immediately increase your value to your clients, allow you to win more consulting business and get more commercial real estate transactions done.

Based on years of successful professional investment experience in purchase transactions, buyer due diligence, valuation, financing, market analysis, market forecasting and advisory services in major US markets, in deals ranging from $2,000,000 to over $500,000,000, gained at leading asset management, valuation, research, brokerage and investment banking firms, this information packed seminar presents an in-depth discussion of how to buy commercial real estate and how real estate markets work. You will learn what “insiders” have learned; that when you buy commercial real estate, what you are really buying is a part of the market that real estate is located in.

First, there is a review of a proven 8 Step Process to buy commercial real estate like a seasoned “professional”, which was first introduced in the “Acquiring” seminar. Presented in a logical step-by-step approach and with just the right balance between what is “real world practical” and what is academic, you will obtain a clear understanding of the right way to buy commercial real estate that will meet investment goals as well as get financed that you can put into practice immediately.

Second, there is a practical discussion of real estate markets in plain language which can be put to work immediately. What markets are and how they are used by real estate investors to enhance their wealth building strategies. You will learn how to focus your investment objectives to the right part of the real estate market, which will increase your investment clarity and drive investment success. Next, you will learn about real estate market cycles, what they are, how they work. Investors place great value on knowing where they are within a real estate market cycle because they know that they can get “caught” in an unpleasant part of that cycle.

You will learn about the predictable and cyclical nature of real estate markets, the 4 phases of the market and what each phase looks and “feels” like. We will move from economic terms such as a “recession” phase, to better known jargon such as a “buyers” market. The movement through market phases will be discussed in economic terms as well as more intuitive terms using two widely accepted visual aids to illustrate real estate market cycles: the “Time Clock” and the “Waveform”. This mix of economics and intuitive visual aids will give you a clear understanding of markets, and you will realize that “the market does make smart people money”.

There are also two “break out” discussions which can be applied to any real estate market. First is a simple 6 question survey about cost, price and value. Answering with one of the three options provided will immediately give you a realistic understanding of which way real estate risk and return are moving and will help you make better investment decisions. Second is a simple 8 question survey about specific market trends such as buyers, prices and cap rates. Answering with one of the four options provided will immediately give you a quantified measure of which phase of the real estate market you are in right now, which phase you are leaving and most importantly, which phase is next. Imagine the value added to your investment decision making process when you can definitively predict future conditions in your selected market and selected property type. It is literally like having a “crystal ball” for forecasting the future.

Who Should Attend?

Anyone who has an interest in how successful commercial real estate transactions get done and how market cycle’s effect returns must attend this seminar! If you want to gain the mindset of a seasoned investment professional, which will increase your skill set, impress your clients and let you do more commercial real estate transactions, win more consulting assignments, then you must attend this seminar! Investment knowledge is financial power and with it you will rise above your competition, impress your clients and earn more business by increasing your professional value and worth. This seminar has been attended by bankers, brokers, investors, property owners, joint venture partners, underwriters, loan officers, accountants, appraisers, CPA’s, attorneys, investment bankers, hedge fund managers, financial officers, investment officers, real estate counselors, and property and investment managers.

Benefits:

Based on the book which was written by the presenter, Joseph Petrole, MAI, CCIM, a real estate industry insider with more than 35 years of experience, this manuscript is chock full of information, with end of chapter multiple choice and “number crunching” questions, and an addendum with discussion questions and actual examples of purchaser Letters of Intent, financing Loan Commitments and a 12 part buyers Due Diligence Checklist.

• What is a Real Estate Market?
• Parts of The Real Estate Market: Location, Property, Quality, Participants
• The Changing Cost, Price and Value of Real Estate
• Is the Investment Return Worth The Risk: Just Answer 6 Questions
• What is a Real Estate Market Cycle?
• Phases of a Market Cycle: Recession, Recovery, Expansion and Contraction
• Phases of a Market Cycle: Buyers, Sellers and Stagnant Market
• Market Cycles Made Easy: The Real Estate Market Cycle Time Clock
• Market Cycles Made Easy: The Real Estate Market Cycle Wave Form
• How the Real Estate Market “Speaks” to Us
• Knowing Where You are In the Market Cycle: Just Answer 8 Questions
• Establishing Your Investment Objectives
• Do you know what kind of an investor you are? Investment Sentiment
• Do you know your investment? The Investment Scoreboard Test
• Investment Basics: Safety, Income and Growth
• The Eight Considerations in Establishing Your Investor Sentiment
• Matching your Sentiment, Objectives and Expectations with Investments
• Do you know what the market is thinking? Market Sentiment
• The 8-Step Buying Process: Have a Plan to Get Your Deal Done
• When to Contact an Owner: Letters of Intent
• Contracts and Inspections
• Due Diligence Made Easy: The 250 Question Check List
• Making A Decision: Seeing beyond the Numbers to the Big Picture
• How Closings Work