Investing in Commercial Real Estate

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Return on Your Investment, 15%, 20% 30%... MORE?

The Team : 

The Team Stanley Morikawa, Broker, Realtor (R) Tel: 808-557-1840 StanMori06@yahoo.com Don M Hashimoto, Realtor Associate - R(S), Certified Commercial Real Estate Specialist, Institute of Commercial Real Estate Tel: 808-640-2908 DonHashimoto@gmail.com Consultants: Gary Sturgeon, Florida; Jerry Green, Ohio Megan Zucaro, Texas

7 reasons to invest in commercial real estate : 

7 reasons to invest in commercial real estate 1. IMMEDIATE POSITIVE CASH FLOW – find the right deal, negotiate the right terms – and receive positive cash flow from the first month. Unlike residential properties – a lot of times you wait for the rent to catch up with mortgage payment, sometimes it takes years of waiting and feeding the alligator. 2. INCREASED LONG TERM INCOME STREAM – With built in rent escalations the income stream increases yearly. 3. INCREASED ASSET VALUE OVER THE YEARS – With commercial properties the value of the property is primarily based on the income it brings in. The more income the property brings in the more valuable the property. With built in yearly rent escalations the property will increase in value every year. Residential values as we are experiencing is dictated by the market.

7 reasons to invest in commercial real estate : 

7 reasons to invest in commercial real estate 4. TAX WRITE OFF’S – Tax benefits from day one. 5. EASE OF HOLDING, MANAGING, AND MAINTAINING – In the case of multi-family properties, hire a property manager and build that cost into the projected operating costs. For triple net leases, the lease holder takes care of taxes, insurance, maintenance. 6. MAKE MORE MONEY – A 25 family mult-family unit property with a net operating income of $100/month = $2500 month versus four residential properties with a net income of $100 each = $400. 7. TARGET INTEREST RATE - Determine how much of a return you want on your money and we will identify, analyze, and negotiate the deal that will bring in that return for you. For a multi-family building a 15% cash-on-cash return is the target return we look for.

IDENTIFYING THE RIGHT DEAL : 

IDENTIFYING THE RIGHT DEAL WHERE ARE WE LOOKING? Midwest, Ohio, Texas (specifically Dallas/Fort Worth). WHAT ARE WE LOOKING FOR? Primarily multi-family unit buildings in good demographic areas in terms of employment, amenities, market compatibility, etc. WHY IN THESE AREAS? Affordability of the property and lower cost of living. This means higher capitalization rate = ratio of net operating income and the purchase price. We make more money if expenses are lower and the building is more affordable. We are looking at CAP rates no lower than 9% for multi-family unit buildings. WHAT SPECIFIC TARGET? Looking for deals in areas that the cash on cash return will be at least 15%. For every dollar invested into the deal we are targeting a 15% annual return. WHO ARE THE DEAL IDENTIFICATION TEAM? Stan Morikawa ® Realtor. Don Hashimoto, Certified as Commercial Real Estate Specialist by the Institute of Commercial Real Estate. Dr. Hashimoto collaborates with Gary Sturgeon of Florida, Jerry Green of Ohio and Megan Zucaro of Texas on the identification and analysis of prospective projects. - Let’s take a look at a few deals that have been identified and analyzed

HILL VIEW COURT –Summary : 

HILL VIEW COURT –Summary 30 Coffman Trotwood, OH 45426 Property Type: Multi-Family Purchase Price: $775,000 Units: 23 Total Rentable Sq. Ft.: 5,000 Resale Valuation 9.000%

HILL VIEW COURT –Executive Summary : 

HILL VIEW COURT –Executive Summary

HILL VIEW COURT –Net Operating Income (NOI) Year 1 - 10 : 

HILL VIEW COURT –Net Operating Income (NOI) Year 1 - 10

HILL VIEW COURT –Net Operating Income (NOI) Year 11 - 20 : 

HILL VIEW COURT –Net Operating Income (NOI) Year 11 - 20

HILL VIEW COURT –Cash Flow Analysis (Cash On Cash Projections) Year 1 - 10 : 

HILL VIEW COURT –Cash Flow Analysis (Cash On Cash Projections) Year 1 - 10

HILL VIEW COURT –Cash Flow Analysis (Cash On Cash Projections) Year 11 - 20 : 

HILL VIEW COURT –Cash Flow Analysis (Cash On Cash Projections) Year 11 - 20

Wyndham on the Creek –Summary : 

Wyndham on the Creek –Summary 9633 Ferris Branch Road Dallas, Texas 75243 Property Type: Multi-Family Purchase Price: $5,750,000 Units: 151 Total Rentable Sq. Ft.: 110,449 Resale Valuation 9.000%

Wyndham on the Creek – Executive Summary : 

Wyndham on the Creek – Executive Summary

Wyndham on the Creek – Net Operating Income (NOI) Year 1 - 10 : 

Wyndham on the Creek – Net Operating Income (NOI) Year 1 - 10

Wyndham on the Creek – Net Operating Income (NOI) Year 11 - 20 : 

Wyndham on the Creek – Net Operating Income (NOI) Year 11 - 20

Wyndham on the Creek – Cash Flow Analysis (Cash On Cash Projections) Year 1 - 10 : 

Wyndham on the Creek – Cash Flow Analysis (Cash On Cash Projections) Year 1 - 10

Wyndham on the Creek –Cash Flow Analysis (Cash On Cash Projections) Year 11 - 20 : 

Wyndham on the Creek –Cash Flow Analysis (Cash On Cash Projections) Year 11 - 20

Kiest Villa Apts –Summary : 

Kiest Villa Apts –Summary 3808 East Kiest Blvd. Dallas, TX 75203 Property Type: Multi-Family Purchase Price: $440,000 Units: 49 Total Rentable Sq. Ft.: 14,198 Resale Valuation 9.000%

Kiest Villa Apts – Executive Summary : 

Kiest Villa Apts – Executive Summary

Kiest Villa Apts – Net Operating Income (NOI) Year 1 - 10 : 

Kiest Villa Apts – Net Operating Income (NOI) Year 1 - 10

Kiest Villa Apts – Net Operating Income (NOI) Year 11 - 20 : 

Kiest Villa Apts – Net Operating Income (NOI) Year 11 - 20

Kiest Villa Apts – Cash Flow Analysis (Cash On Cash Projections) Year 1 - 10 : 

Kiest Villa Apts – Cash Flow Analysis (Cash On Cash Projections) Year 1 - 10

Kiest Villa Apts –Cash Flow Analysis (Cash On Cash Projections) Year 11 - 20 : 

Kiest Villa Apts –Cash Flow Analysis (Cash On Cash Projections) Year 11 - 20

How Do I Get Involved? : 

How Do I Get Involved? There are several ways to get involved: 1) Contact Don Hashimoto 2) Buy a property for your personal portfolio.   3) Buy a property with partners of your choice.   4) Buy a property as part of a limited partnership (Hui), pooled moneys.

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