Investing in Income Properties

Posted by on Jan 30, 2011 in Blog, Real Estate, Success | 0 comments

I recently read the book Investing in Income Properties: The BIG SIX Formula for Achieving Wealth in Real Estate written by Kenneth D. Rosen of Kendar Realty. It’s interesting to see why I decided to read this book specifically. Ken Rosen had donated money to the Florida International University Jerome Bain Institute Real Estate Institute and is on the advisory board, so naturally, since I am currently the Real Estate Alumni Affinity Council president, I heard of him, but I didn’t know he wrote a book on investing in real estate. It wasn’t until I had Jeff Cohen from EWM in Miami Beach as a speaker for a Real Estate Student Association event entitled, Investing in Commercial Real Estate, that I found out that Jeff had a chapter dedicated to himself about and investment that Jeff had done in the book, that I found out about this book. I didn’t end up reading the book until after I met Ken’s son, Britt. Britt Rosen is a good friend of mine and has his own appraisal company called Brittex. I definitely recommend him as he has already helped friends of mine.

I want to note that nearly all the people that are mentioned in the book have made investments in the South Florida real estate market. It seems like if you’re interested in finding out who some of the power players out here in the South Florida real estate market, take a look at the names in this book. I’ll list some of the name in the book here as to give you an idea of some of the people you may be able to network with and learn from if you’re interested in investing in income producing properties. The names in the book are: Gina Anderhub, Alicia Baro, Jorge Cantero, Ben Chauncey, Jeffrey Cohen, David Dabby, Tony DeRosa, Anthony Dilweg, Tom Dixon, Bob Gallaher, Jose Gaviria, Sandra Goldstein, Leonard Kaplan, Philip Leitman, Christine Marie, Edmund Mazzei, Ted Pappas, Jim Pollack, David Probinsky, Scott Sime, Bill Strickfaden, Cliff Suchman, Robert L Valledor, Ana Vega-Garcia, Martin Waas, Ken Weston, Paul White, Frank Lloyd Wright, Lawrence Yun, and Benn Zack. These are only some of the individuals in the book, and after I wrote the names here, I realized that they weren’t all investors in the South Florida area but are still heavy-hitters to reach out to.

The way I am writing this is I will first include the table of contents just so people can get an idea of what specifics the book covers. At the end of every chapter in the table of contents, there is ‘The Bottom Line’ which I won’t include in the Contents only because it isn’t that important for me to include it now that you know about it. I will then talk about specific parts of the book that fascinated me. This is pretty much the way the rest of this blog post will go. After writing the Table of Contents first, I noticed that it was going to be very long and take away from my main points. The book has a lot of information to offer and so, I will provide the Table of Contents at the end, and the main points which I enjoyed, first.

The first section provides a basic overview about why to invest in real estate, “Leverage, one of the most significant advantages of investing in real estate, refers to the practice of using a minimal amount of cash to buy a property while financing the balance for the longest term possible at the lowest available interest rate.” Leverage is one aspect the first section talks about as well as tax benefits. The blurb on overcoming fear is a really good blurb as I think most people don’t invest in real estate because of their fear. As the book professes, ‘knowledge’ is the antidote to overcoming fear, and the book definitely increases one’s knowledge about real estate investing. Here are some of the reasons people fear investing in real estate: No-Money-to-Invest Fear, Fear of Inexperience, Price Tag Fear, Fear of Management and Leasing, Fear of an Economic Recession, Fear of Risk, and the Lack-of-Information Fear.

I’m particularly fond of industrial properties. The book defines industrial properties as well as other income properties. Industrial Properties: This real estate category include flex space, which is a combination of office and warehouse facilities, and small bay warehouses. Factories and large distribution warehouses are also industrial properties. Some of the other income properties are apartment complexes, office buildings, shopping centers, retail strip stores, parking garages, mobile home parks, and hotels and motels.

I can’t mention the Big Six formula here because I don’t want to invade on anyone’s intellectual property. However, if you’re interested in the book, you can purchase Investing in Income Properties here on Amazon.

This is definitely a book that I will be reading again in the future.

Contents

  • Acknowledgements
  • Introduction
  • Part One The Basics
  • Chapter 1: Why Commercial Real Estate
    • Real Value, Real Ownership, Real Estate
    • The Control Factor
    • Financing Options
    • The Leverage Edge
    • Tax Benefits
    • Access to Information
    • Easy Troubleshooting
    • Overcoming Fear
    • The Bottom Line
  • Chapter 2: Real Estate 101
    • What Is Real Estate?
    • Types of Income Properties
    • What Real Estate Can Do for You
    • The Search Begins
    • Purchase and Sale Contracts
    • Closing
    • Education
    • Real Estate Lingo
    • The Bottom Line
  • Chapter 3: Assembling the Team
    • The Broker
    • The Attorney
    • The Certified Public Accountant
    • The Bottom Line
  • Chapter 4: Getting the Money
    • Obtaining a Home Equity Loan
    • IRA Accounts
    • Cash Value of Life Insurance
    • Customized Creativity
    • The Use of Options
    • OPM
    • Ask Your Banker
    • Present Sacrifice for Future Benefits
    • The Bottom Line
  • Part Two: The Big Six Formula
  • Chapter 5: Location: Planting Investment Roots
    • Evaluating Locations
    • Industrial Properties
    • Short-Term Gains and Declines
    • Long-Term Gains and Declines
    • The Bottom Line
  • Chapter 6: Building Quality and Design Efficiency: Ensuring the Long-Term Viability of Your Portfolio
    • Class A Buildings
    • Class B Buildings
    • Class C Buildings
    • Class B Apartment Buildings
    • Class B Retail Strip Store Centers
    • Class B Office Buildings
    • Industrial Properties
    • The Bottom Line
  • Chapter 7: Tenant Profile
    • The Right Fit
    • Factor No. 1: Rental Rate and Terms
    • Factor No. 2: Gross or Net Lease
    • Factor No. 3: Size of Units
    • Factor No. 4: Impact of a National Tenant
    • Factor No. 5: Right of First Refusal
    • Factor No. 6: Potential Condo Buyers
    • Factor No. 7: Parking Considerations
    • Factor No. 8: Undesirable Mix of Tenants
    • The Bottom Line
  • Chapter 8: Upside: Maximizing the Return on Your Holdings
    • Tenants Can Set the Price of a Building
    • Upside Strategies
    • The Bottom Line
  • Chapter 9: Financing: Choosing the Fiscal Formula that That Matches Your Goals
    • Before You Begin: Your Credit Report
    • Financing Components and Dynamics
    • Appraisal
    • The Advantages of Dealing with Local Banks
    • Ideal Financing
    • Getting Your Loan Approved
    • Private Lenders
    • The Romance of Leverage
    • Infinity Return
    • All-Cash Buyers
    • Burn the Mortgage Quickly
    • Mortgage Brokers
    • Healthy versus Unhealthy Debt
    • The Bottom Line
  • Chapter 10: Price: Looking Beyond the Price Tag to See the Big Picture
    • The Price-Is-Too-High Syndrome
    • Things to Know
    • The Bottom Line
  • Chapter 11: Anatomy of a Big Six Deal
    • Adam’s Manor
    • The Sellers
    • Listing the Property
    • The Buyer
    • Setting the Stage
    • The Buyers’ Strategy
    • Sealing the Deal
    • Brokers Meet the Sellers
    • Now What?
    • The Bottom Line
  • Part Three: Moving Forward
  • Chapter 12: Management and Leasing to Enhance Your Investment
    • Managing Apartment Buildings
    • Managing Small Retail Centers
    • Managing Small Bay Warehouses
    • Managing Office Buildings
    • The Bottom Line
  • Chapter 13: Condo Conversions: Big Money in Small Apartment Buildings
    • My Start in Condo Conversions
    • Criteria for Converting Small Buildings
    • Critiquing the Units
    • Announcing the Conversion
    • Announcing the Improvement Program
    • Handling the Unsold Units
    • Legal Requirements
    • Bradford Terrace: A Mini Case Study
    • The Bottom Line
  • Chapter 14: One Good Investment is Isis Worth a Lifetime of Labor
    • The Shift: by Jeffrey Cohen
    • I Came to New York: by Christine Marie
    • Love at First Sight: by Tony DeRosa
    • If I Never Made Another Deal: by Cliff Suchman
    • You Can Never Know Too Much: by Anthony Dilweg and Andy Roberts
    • I Made It in Buying: by Kenneth D. Rosen
    • The Bottom Line
  • Glossary
  • About the Author
  • Index

Leave a Reply