21 Dec CREPN #123 – Knowledge and Numbers are Key to Commercial Real Estate Investing with Yishai Breslauer
Knowledge and Numbers are key to Commercial Real Estate Investing. Yishai Breslauer was a school teacher with a thirst to learn more about real estate investing. [x_audio_embed][/x_audio_embed] He started by learning the local building codes and laws and applied these to his residence to create additional needed space for his family. Soon the neighbors were following his lead, and a neighborhood was transformed. Yishai continued to learn about real estate. He found there were opportunities if you knew what was allowable and applied this knowledge to an existing property. This was an opportunity to increase the value of the property.
Start with Knowledge and NumbersThe more Yishai learned, the more he got excited at the possibilities. His pursuit of knowledge led him to learn more about laws, statutes, finance and real estate development. When he applied the numbers to his knowledge he could tell if he had a real opportunity. Quickly, he learned there was a hierarchy to real estate from Residential to Commercial. There are multiple asset classes to chose from in commercial real estate. Residential / Multifamily is simple because a home is familiar to everyone. Everyone needs a place to live, and the components of a multifamily property are very similar to single family. The questions you need to know the answers to are:
- What are the needs of a family?
- How good is the school district?
- Is grocery and shopping nearby?
- Are there churches nearby for families to worship at?
Commercial Real Estate Investing is differentHis interest in real estate took him to a position with a major real estate developer as the head of investment banking for real estate. He learned that the highest level of real estate investing, commercial, the level of information that is combed through and analyzed on larger deals by professionals, is incredible. Office and Retail is more complex. While everyone needs a place to work, the fundamentals for each class are different than residential. The questions you need to know the answers to include:
- Who is your tenant?
- What is needed by the tenants?
- What is available in the area?
- Traffic count needs?
- What is a good tenant mix?
- What the bank will need?