Page 276 - Trump University Commercial Real Estate 101

INDEX

Direct mail (continued) Environmental reports
sources of lists for, 45–46 due diligence and seller’s, 91,
time management and, 39–40 110–111, 124–125
tips for writing letters, 46 in loan application package, 171
Discipline, 194 Equity, building of, 9
Diversification, of investment properties, Equity partnerships, 176–177

159–160 Escrow account, 76
differs from distraction, 190 Escrow agent, 132–133, 134
Dog deals, handling of, 140–141 Estoppel letter, 76
Double-net lease, 76 due diligence and, 129–130
Down payments, 161 Eviction process, property manager
Dual agency agreement, 244–245 and, 220
Due diligence, 113–115. See also Value, Exclusive agency listing, 246
calculating of Exclusive listing, 246–247

financial, 113–114, 115–122 Executive summary
legal, 114, 126–130 in loan application package, 170
lending commitment and, 131–132 in property manager’s report, 227
physical, 114, 122–126, 150 Existing debt, assumption of, 172–177
requests of seller’s information, 91–92, Exit strategy, knowing at purchase, 228.
115–121 See also Resale
reviewing results of, 130–131 Expenses
seller’s package of, 111 as component of value, 73
when reselling, 249–250 conservative assumptions about, 192–193
decreasing before resale, 237
Echo boomers, 26, 27 pass-through, 75
Economic occupancy, 77 value plays and higher-than-normal, 12
Effective date, in letter of intent, 90–91
Effective gross income, 63 Failure of deals, common causes of,
80/20 rule, 62–63, 113, 196 149–153
Elevator speech, 59–60 being cheap, 150–151
Emerging markets, 10–11 doing marginal deals, 151–152
beginning stages of, 20–21 not taking action, 150
Emerging Real Estate Markets (Lindahl), Fannie Mae, 163, 165
10, 73 Fear, risk avoidance and, 145–148
Eminent domain, supply and, 29–30 Fees, property manager and, 219
Empathy, displaying during negotiation, Financial due diligence, 113–122
100 bad deal recognition and, 143–144
Employees bank deposit records, 118
due diligence and payroll register, 120 capital improvement and maintenance
ownership change and, 136 log, 120
property manager’s role and, 215 deferred maintenance reports, 121
Employment, market cycles and, 18–21, insurance policy and claim history, 120
30, 32–33 loan documents, 118
resale timing and, 232–233 monthly operating statements, 116
E-myth Revisited (Gerber), 51 payroll register, 120
Environmental inspections, 124–125 property tax bills, 119

256

10/14/08 11:32:31 AM
bindex.indd 256
bindex.indd 256 10/14/08 11:32:31 AM