Real Estate Management

at the Corporate and Worldclass level.

Managing property at the million sq ft level and above puts you in a very lofty class - world class in fact. Having what it takes to operate at that level is beyond all but a small percentage of the real estate firms or corporate real estate offices.

World Class Real Estate measures corridors in miles or kilometers. And that is at one location.

When you can spend a full day walking the property and not get to all the places you need to see you are at the World Class level.

We count elevators by the dozen.

Power loads are enough to make the local electric company call when our demand drops.

Security is a 24 hour 7 day requirement.

Water usage is measured in thousand gallon per minute flow rates.

Managers and owners working at this level require training, skill and a vast knowledge of many different technologies. Skills taught in few places and often learned the hard way.

Here we have collected a directory and resource - a reference point - for those at that level.

And of course, those who would like to be at that level.

Do you run at these levels? If you do, or want to, let us know.

Welcome to the Multi-Million SqFt Club!

Donald Trosper

Flipping Real Estate: Calculating Costs
Heather Seitz
129b If you've been in the real estate investing business, or more specifically been flipping real estate, for more than a few days, you've inevitably gotten an email that reads something like this:

“Investor's Dream. This property will go QUICK.

- Property Address: 1234 Main Street - Asking Price: $100,000 (Add or subtract zeros!) - After Repair Value: $150,000 - Repairs: $15,000 - Profit: $35,000 - Details: Needs paint, carpet, tile, new kitchen, update bathroom, some roof damage. - Tenant occupied. Need to evict!”

STOP! Before you read on… Take a guess at what you think the “real” profit's going to be on this real estate investment…

If you haven't ever gotten an email or fax broadcast like this, then rest assured, you will! I'm about to probably tick off all of the late night infomercials and pitchmen out there! Sure, I understand that when you've got 30 minutes (or 90 minutes, for that matter), that you've to sell what's sexy… not what's real!

Now it's my turn to expose the real deal on real estate investing! This goes for flipping real estate itself (i.e. properties) or simply flipping the contract (also known as assigning the contract). When you're flipping real estate, you need to be able to calculate the “real” bottom line and if your assigning the contract, you need to know your numbers so you don't get blacklisted from investors! This one piece of information will keep you from getting into trouble because of any “real estate bubble”!

Purchase Costs Here goes… Have you EVER purchased and sold a piece of real estate for FREE? If you're not sure what the answer is… It's an emphatic NO... You are going to have costs to buy, costs to hold and costs to sell. This holds true even if you are buying a property for all cash. (Think title fees, attorney's fees, recording fees, etc.)

If you're not getting a mortgage, your purchase costs are obviously much lower, but nonetheless, there are costs associated with any real estate transaction. Plus, more than likely, if you're relatively new, you're probably not paying all cash for property anyways. You're probably going to be using a hard money investor for your initial real estate investing financing!

For a quick calculation, you can estimate anywhere between 3% - 5% for closing costs to just acquire the property. That's 3%-5% of the purchase price.

Holding Costs How much is it going to cost you each and every day to own this piece of real estate? See, if you're making money in real estate, you'd better believe that there are a lot of other people that are going to expect to get paid and they get paid in the form of mortgage interest, property taxes, utilities, property insurance, etc. Each of these is an expense each and every day that you own the property. Here's an example… A hard money loan on a bread and butter type piece of real estate might run you 15%. Let's say you got the property for $100,000. Every month, you are paying $1250 in interest alone. Let's say that taxes and insurance are another $200/month and then utilities at $100. Right there, the property is costing you $1550/month – or roughly $50/day. See, why it's important to know your not only your holding costs on a real estate investment, but also how long it's going to be on the market before you can flip the property.

Selling Costs Here's the third part of the real estate investing puzzle. When you want to turn around and sell this piece of real estate, it's going to cost you yet again! Are you going to use a real estate agent and pay a commission or 3-4-5% or even more? On $150,000, that's anywhere from $4500 to $7500 chopped of the top. Then, you can figure 1-2% in closing fees.

If you can remember this… and apply what you've just learned to each and every real estate deal that you do, you'll be safe flipping real estate in any market. You see, if it's a hot market, you can calculate less time for holding cost. But, in a slower market, make your offer based on 6 months or 9 months of holding costs. It's really simple math! And real estate really is a numbers game…

Recommended Resources: Finding Deals: www.motivatedsellermarketing.com Estimating Repairs: www.fixingandflipping.com Finding Contractors: www.servicemagic.com

Heather Seitz, the co-creator of Fixing and Flipping software, takes the guesswork out of estimating repairs. Learn how to estimate repairs and calculate profits in seconds. Click below for your free video and mini-course: http://www.fixingandflipping.com