Page 247 - Trump University Commercial Real Estate 101

Use a Time Multiplier

Next, get two versions of the profi t - and - loss statement. One
should compare the current month ’ s actual numbers with the operat-
ing budget.
The other version is the twelve - month trailing report. It shows
you the last twelve months of operating numbers side - by - side, so that
you can pick up on trends.
The variance report will explain any items on the profi t - and - loss
report that came in more than ten percent above or below projections.
Review a copy of the balance sheet, so that you can keep an eye on
current assets and liabilities.
Also ask for a list of capital improvements that are either in process
or scheduled to be done.
All these reports should be accompanied by an executive summary
that succinctly explains highlights from the underlying reports. Cate-

gories covered will be revenues, expenses, cash flow, capital improve-

ments, operations, staffing, and miscellaneous.
The executive summary is important because you shouldn ’ t have
to go digging for the good or bad news. However, don ’ t simply rely on
the summary, but study the numbers yourself.

Giving Up Control in Order to Have Control

The most successful commercial real estate investors have met the
challenge of giving up hands - on, direct involvement with properties.

It ’ s painful to do so at first, because our senses of sight, sound, and
touch are so strong. It is indeed a challenge to disregard the thought
that I must see and touch my property to know what ’ s really going on and
rely instead on a comprehensive instrument panel.
Someone is defi nitely hands - on with your property, and it should
be your manager, not you. This frees you to go out and do more
deals.
Here are several other recommendations that will lift you out of
property management and into asset management , where the big money is.

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