Nothing to lose! Everything to gain.

Over the years, I've read numerous real estate investing books. Starting with residential investing, I quickly realized that it was commercial investments that would provide the life I wanted. There are some good books out there, but nothing that gave me the complete picture, the entire package of information from the beginning to the end. Finally, there IS such a book. Samuel Gobar have written it! Commercial Real Estate Investing for Dummies is by far the best book for commercial real estate investors that I have ever read.

If you study it and really take the advice to heart, you'll understand the business completely. It's written in a very readable style, so even if you're brand new to the concepts you can understand and remember them. Or, if you're a seasoned investor, you can whiz through the chapters that cover familiar ground, and spend some extra time reading the chapters that will really strike home to you. For example, the chapter, "Why Properties Fail," particularly resonated with me. I learned enough in that chapter to save me from making some common mistakes.

Commercial Real Estate Guide for Beginners is a great book. The authors' experience and knowledge is evident in every page. The book is well-organized, so you can start at the beginning as a raw newcomer, listen to the end, and have an excellent foundation to begin your commercial investing. Or, you can go right to a section that interests you, such as "Kicking Your Investing into High Gear," and learn all about expert tax advantages or how to make a success out of commercial fixer-uppers.

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24 people found this helpful

Step by step guide

It's the best of lectures in commercial real estate. The information comes from two men who spend their life practicing what they preach. And they want to share it with you. I could have used this book long ago, but good things do come to those who wait. Its existence is timeless. I cannot phantom not being able to access this book as a serious real estate investor. It is good schooling.

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Makes it simple and enjoyable to be a landlord!

Any business proprietor, whatever business they can be in, will let you know that you'll require to truly have a business plan before you even think about starting your business. You intend to be in the business enterprise of real business investing, and which means that you'll have your own business. To be certain that it's going to achieve success and become everything that you would like it to be, you will need to ensure that you will be attempting to get the most out of business. Using this method, you will place yourself up to get various goals, which can make it easier so that you can strike the goals. Samuel Gobar writing on commercial real estate investing. There is a lot of meat between the covers that is delivered in very digestible pieces. I highly recommend the book and will use it often. They cover every aspect of investing from start to finish in enough detail to actually put into action. Many books have left me dangling with too many gaps to fill. This book walks through each step of the process with enough content to put into practice. This is a great refresher for active investors, or a big step into the world of commercial real estate investing for beginners.

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A Great Resource

This book provides so much information to the beginner and experienced investor. It is a great reference.

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1 person found this helpful

To get you ready for your rentals

Understanding the difference in commercial real estate and residential real estate investing is as simple as knowing the difference in a home that people live in and a business that people work in. When you are figuring out how to make money with commercial real estate, you need to find out what is going to be popular in your area. For example, if you live in a large city, it will be better to have office buildings as commercial real estate. If you reside in a small town or even in an area where there is a lot of factory work and production, you may be better purchasing and renting out things like where businesses are located. The commercial real estate that will be profitable will be dependent on the area that you are in nearly every location is going to be different. By reading this book, you will be able to figure out what type of property will be profitable for you, the amount that particular properties are worth and the best ways to finance the property. You can also learn the negotiation tactics that pros use so that you can try to make the most out of the process. It is a good idea always to figure out how you can benefit from the tax breaks and the deals that are sometimes found with commercial properties. Try your best, and you will be able to have the best experience possible with commercial real estate.

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Wave of the future

In this book, readers learn how to invest in commercial real estate such as office buildings and apartment buildings. I think that it provides a good introduction to real estate, but I will say that, Why Properties Fail, is the most important one. People tend to get excited about how much money they will make and forget about what can happen when they do not. I really liked how the author said one of the reasons for failure is to forget to run the property like a business. I will add to this a little more because this creates a refinancing risk.

Residential real estate is completely different from commercial real estate. Investors can place a 30-year mortgage on a single-family home and only refinance when the rates drop to a level that it is beneficial to them. However, commercial real estate can only be financed with a 3, 5, or 7-year mortgage meaning that the owner has to refinance after these years. This requirement can have a huge impact on whether you make or lose money.

Here is why:
Let's say you buy a commercial property for $3,000,000, and it generates income of $600,000 and incurs expenses of $300,000. So you are left with $300,000, which is your net operating income. Let's say that the bank requires you to put down 25%, which, in this case, is $750,000, and you get a mortgage for $2,250,000. You operate the property for 3 years, and it is time to refinance. But for some reason your real estate taxes, insurance, and other expenses went up from $300,000 to $350,000. Also, you had to lower your rent or you lost some tenants and your income went from $600,000 to $550,000. Now, your net operating income is $200,000 ($550,000 - $350,000), which is less than $300,000 before. You might say this is not big deal because you are still making positive cash flow. I don't agree. This is a huge deal because commercial properties are valued mainly based on income and now your property is not worth $3,000,000 to the bank that will be refinancing the property. With a net operating income of $200,000, the property may be worth only $2,000,000, and this is a problem because you have a loan of $2,250,000. This means that you just lost your entire equity and some more. Now, you cannot refinance because you might not have enough money to pay the first bank, and you cannot sell because the proceeds from the sale will not be enough to pay off the mortgage. This is the problem that experts are discussing on TV during the current financial crisis. They predict that because property values went down, owners will not be able to refinance, and there will be an increase in the number of commercial real estate foreclosures.

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16 people found this helpful

A+ value so far for new investors

They you can read 1000 books or just the 1 right book to turn your life around. This book is my 1 right book for commercial investing.

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Priceless

Well thought out and great presentation as everything else is that these two do or write. It is obvious that the core of the authors purpose is to educate and relate from and through their life experience. The format of the book is very accessible and easy for any reader. The content is top notch. Great job guys!

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Very complete overview of rental properties

Had much more detailed specifics about how to actually do the process versus other hype books that just tell you to try hard and you'll win, etc.

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Lots of structure and help in this book!

This is a must read for both new and experienced commercial investors. Having read more than a dozen books on commercial real estate investing over the past few years, I can honestly say that this book rates as one of the best. This book does an excellent job of combining the most useful information in an easy to read format with lots of useful tidbits throughout. The authors go beyond summary level information about the topic and really cover important details that can be put into action right away. There is also some really helpful information accessible through a website that accompanies this book. From topics such as negotiations and property finding to raising private capital and property management, this book covers all topics a real estate investor must deal with on a daily basis to be successful. Cash is your best option to ensure that you don't start your business out in the opening, which is the only path that you'll ever have to start out profiting from your real estate investments once you start the business enterprise. It is smart to always try to be sure that you will be using cash every time that you do ventures. Few people, though, can to begin spending with cash. If you'd like to start out with the money option, you will need to be sure that you make an effort and conserve so as to start investing straight away (unless, of course, you've received an inheritance or another lump amount of cash). If you are new and looking to get into the investing game this is a great place to start. If you have been investing for several years the book is a great refresher.

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14 people found this helpful