I just wrapped Craig Coppola’s book, How to Win in Commercial Real Estate Investing and have listed my top 5 takeaways below.
And, if you want to hear Craig’s best real estate investing advice EVER then check out my interview with him here: https://joefairless.com/blog/podcast/jf209-one-expense-everybody-underestimates-when-buying-office-buildings/
Top 5 Takeaways from How to Win in Commercial Real Estate Investing
1. Be a LOCAL expert. Identify a neighborhood or submarket then make a list of properties you want in that area. Run the #s on them and track their progress. Make offers on those properties when it makes sense.
- Craig even applied this method when buying his own home. He knew the specific neighborhood he wanted, the house MUST haves and then narrowed it down to a list of just a handful of homes. He then went door-to-door (with his kids) and gave a letter to homeowner saying he wants to buy their house so he can move in with his family.
2. Use the T-Bar. It’s taught by CCIM (Certified Commercial Investment Member) and helps show returns in a simple way. (see picture below)
4. In market cycles, residential is always the first to decline and first to rebound. Multifamily follows a little later then retail and commercial.
5. When evaluating deals, the focus is on understanding the potential opportunity then minimize risk.
If you are entering commercial real estate for the first time then I recommend this book because it’s a good overview of the terms and will help you get going. If you want to invest in Office buildings you should DEFINITELY read this book and write a note to Craig to introduce yourself because he’s an Office expert and this book does have a slant towards Office.
You can buy his book on Amazon here: http://amzn.to/1IjHOs1
P.S. one other thing it inspired me to do is talk to appraisers. They know the market and we should take them to lunch tomorrow!