Monday, October 22, 2012

David Lindahl's Commercial Rea Estate

David Lindahl is the author of Donald Trump's book series: Trump University Commercial Real Estate 101: How Small Investors Can Get Started and Make It Big So when I found out David Lindahl is holding a free seminar on commercial foreclosure, I drove 3 hours to go to that seminar.

As with residential real estate investing, the number one criteria to look for is Motivated Sellers. And for commercial real estate, the motivated sellers are banks and mom & pop organizations. The money is to be made if you can identify the problem (find out why they are motivated), see if you can fix the problem, fix it and it usually increases the equity right away.

In addition, if you can find a property in the path of progress (ie, new home depot coming soon), you will have a good holding property with great appreciation potential. Investors can find out about any new development from the city hall's planning department. Also look for revitalization zones that the city plans to invest money into. Usually, there will be grant money available for investors to go into these areas to revitalize the area.

David Lindahl also talked about market cycles which run from peak to valley to peak in about every 8 to 12 years.You can find out about where the cycle is by reading the newspapers. When the media say buy, you should actually sell and move the money to other emerging markets. How can you tell the market is just starting to come back to life? The rent will increase for the first time in a while. There may be job announcement and people are moving in for long-term jobs. Permits for constructions are increasing, etc.