Page 10 - Trump University Commercial Real Estate 101
P. 10
CONTENTS
Property Ownership Associations 54
Real Estate Investment Clubs 55
Attorneys 56
Courthouse 56
Internet 57
Direct Mail 57
Government Agencies 58
Bank-Owned Properties 58
People You Meet 59
Always Be On the Lookout for Deals 60
CHAPTER 4 H OW TO R EAD A D EAL 61
Amateur Mistake: “I can’t possibly take
the time to analyze all the deals
I come across.” 61
In Commercial Real Estate, the 80/20 Rule Is
More Like the 90/10 Rule 62
You Need Only 10 Percent of the Numbers to
Sort Out 90 Percent of the Deals 62
Tools to Calculate Value 64
Another Key Measure: Debt Coverage Ratio 66
Cash Flow Before Taxes 66
The Big Lie: Pro Forma Numbers 68
The Right Numbers 68
Insider Tip 69
The Three Ways to Value Properties 69
Comparable Method 70
Income Method 70
Cost Method 71
Other Important Components of Value 72
Location 72
Expenses 73
Price 73
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