S.E.C. Real Estate Observer

Can you “create” a transaction when one does not readily appear possible? Here are a few thoughts to contemplate. At marketing sessions, pay particular attention to what the attendee’s clients are seeking. Often there is a common pattern, such as a dearth of cash looking for net leased properties. The buyers have determined the quantity, [...]

The classic formula for the successful land developer is to estimate your land cost, development cost, marketing cost, closing cost, holding cost, profit estimate and retail sales prices on the development. After this has been done, you can work this formula backwards to determine the maximum land cost you can afford to pay for the [...]

Ed Berlinski, S.E.C., CCIM, is actively engaged in commercial and general real estate brokerage in his home community of Rochester, N.Y. He is also a private real estate financier who provides funds to assist in closing a transaction or solving a short-term need for cash. Ed visited with the publisher of the S.E.C. Real Estate [...]

I was thinking recently about the old formulas and how some of them are timeless. In reviewing the formulas, I realized that our G5 team (G5 Enterprises, Inc.) has been acquiring properties for the past few years based on someone else using the “Un-built Building” formula. Here is the formula. Un-built Building If a building [...]

Here’s a challenge for all of you in the S.E.C. brain trust. Read the question below and send me your answers. A summary of your responses will be published in the next issue. I recently received the following inquiry from a broker friend of mine. He was concerned about two things. First, was the transaction [...]

How many of us throughout our real estate careers spend enormous amounts of time searching for new clients? Our hunt for transaction income (aka commissions) takes us to all four corners of the planet earth. We spend time cold calling owners, seeking referrals from satisfied clients, networking in our communities, and generally working every angle [...]

When purchasing land that can be subdivided, ask the Seller to carry back a Note and Trust Deed, each of which contains a provision that will require the Note holder to create multiple substitute Notes and Trust Deeds after the land has been subdivided. This will permit landowner to sell off parcels and allow each [...]

Facts: Owner has older duplex with $30,000 appraised value and $18,000 first mortgage. Tenants have lived in both units for several years. Problem: Owner needs cash. There is limited availability of financing for investment property. No market for older duplex in this price range without carry-back financing. Solution: Owner checks subdivision regulations and obtains survey [...]

In counseling with your client and preparing your package for market, it is important to identify profit incentives or other strong reasons for an investor to take your client’s property. It is also an excellent counseling tool to bring your client into the real world. You might want to tell your client, “You know, at [...]

Is there anything more exciting than finding money? When I acquired my apartments in Phoenix, that’s just what happened to me. I found a big chunk of cash in a most unexpected spot, in the laundry room. No, it wasn’t lying on the floor or stuffed in a laundry hamper, it was hidden in a [...]