You will NOT be encouraged to sign up for conferences or clubs to learn a no-money-down investment strategy. This IS a practical guide meant to help you avoid common mistakes and navigate more skillfully through an often byzantine industry. Even better, they allow investors to diversify their investment allocation across a range of real estate product types multifamily, retail, office, self-storage, etc.
Using the practical tips and strategies found here, you can build your own unique real estate portfolio, manage risk, avoid common mistakes, hopefully make money, and perhaps even have some fun along the way. Read more Read less. Kindle Cloud Reader Read instantly in your browser. Customers who bought this item also bought.
Page 1 of 1 Start over Page 1 of 1. Product details File Size: July 21, Sold by: Share your thoughts with other customers. Write a customer review.
Monitoring and evaluation: an insider’s guide to the skills you’ll need
Read reviews that mention real estate private equity estate private highly recommend commercial real well written investing in real learned a lot equity real read the book recommend this book great book estate investor investment investors learn sponsor business guide interested. Showing of 34 reviews. Top Reviews Most recent Top Reviews.
There was a problem filtering reviews right now. Please try again later. Kindle Edition Verified Purchase. If you are looking to invest in real estate like a professional, then why not learn how professionals - not the scam artists you see on late-night TV infomercials - actually invest in real estate?
Better than that, why not learn how to invest WITH them, in their own private real estate funds? In this incredibly insightful book, Sean Cook a pseudonym from an author who refreshingly isn't pimping his own firm discusses the entire process of how a serious investor should invest in real estate. The investor who wants to invest alongside experienced pros who also have skin in the game, thus aligning incentives, will not find a better treatise on real estate private equity investing than this. One caveat that I mention up front: There are undoubtedly exceptions to this, but most private investment funds, be they real estate private equity such as this book describes , private equity, private debt, "hedge" funds, etc.
Most of these funds will also have minimum investment limits. Some of the new "crowdfunded" deals may be lower.
I say this not to discourage potential investors, but note it here so the novice doesn't get the idea that most of these funds operate like a mutual fund or something of that nature! In any case, fund structures are discussed in depth by the author. Caveat aside, if you have the net worth to be interested in a book like this, it will serve you well.
Product details
With all that said, Sean Cook covers the entire spectrum of investing in real estate private equity. He smartly starts with a glossary since many, if not most, people will not have heard many of these terms. Even if you have heard them, you may not understand them. And if you don't understand them in the glossary, do not fear: The author then discusses how investments are structured as well as real estate product types retail, industrial, multifamily, raw land, etc.
Buy for others
The next few sections focus on the meat of the investment process: This also includes a lesson for the non-finance folks about capital structure. The author then tackles the issue of evaluating the financial sponsor the professionals actually making and managing the investments - the persons whom you will be funding. This area is always the most difficult. Good track records are a good place to start but so is the incentive structure how the sponsor will be compensated, how your investment money will be returned to you, etc. This is important because a solid compensation structure will minimize the agency problem and ensure that your incentives investment return, return of capital are aligned with the financial sponsor who will receive payments in the meantime - before you ever receive a dollar - in the form of management fees.
Investment professionals don't work for free! They do have to pay themselves and employees and keep the lights on while the investments play out. The key is to make sure that the fee and compensation arrangements are fair to you, the investor. The author also includes a lot of valuable discussion about investor rights and the different classes of investments and investors.
Not all investment dollars are necessarily the same and not all investors are necessarily treated equally! This is a good - and often underappreciated - discussion. I have seen investments become winners or losers based upon some of these issues, unfortunately.
VA Appraisal - How Appraisers Determine a Home's Value
The last third of the book goes through various valuation exercises comparables, replacement cost, DCF, etc. While my love for financial modeling doesn't approximate that of the author I've always been a believer in GIGO - garbage in, garbage out - and that, consequently, many of the assumptions in models are, to quote one of my old bosses, "wild ass guesses" , financial modeling does play an invaluable role in assessing an investment.
You wouldn't do an investment solely on the basis of a model the other areas of due diligence are just as important , but you sure as heck wouldn't do one without a model either! And, fortunately, Sean Cook understands this point as well! You have to have some basis for understanding the numbers. And that's what financial models: Finally, Sean Cook ties it all together: There is some solid investment advice in this section that could be applied to almost any asset class, not just real estate. But given that real estate private equity is Mr.
Cook's focus, he follows through on the foundation he has built in the earlier chapters and brings the potential investor down the home stretch to finding the right private real estate deals - and the step-by-step process of "pulling the trigger" as he calls it. He ends with his "Key Takeaways", which, again, would be great advice for almost any private investment class, or even most public ones.
The Key Takeaways are nothing earth-shattering, but more solid reminders to the reader not to forget about the big picture.
- .
- .
- Astonishing X-Men: Exogenetic.
- The United States Military in Limited War: Case Studies in Success and Failure, 1945–1999.
- !
- NIrV, Discoverers Bible for Early Readers, Revised Edition, eBook.
Don't get so bogged down in cap rates and IRRs that you forget some of the basics like not putting all your eggs in one basket or as the author says, "spread your bets. Sean Cook will show you how to do that. To arrive at this value, VA appraisers must select comparable sales. These are recently completed sales that are similar to the subject property in:.
- Pregnancy Test!
- Customers who bought this item also bought.
- !
- How VA Appraisers Determine a Home’s Value;
- ;
- .
Comparable sales need to be recent sales. The VA recommends comp sales to be no more than 12 months old, and ideally less than six months old. Comps should also be close to the subject property. Proximity recommendations vary by location and population density. Paul Regional VA Loan Center, for example, prefers comps to be located within one mile of the subject property. If the subject property has something the comp does not, a positive adjustment is made to the comp for that item. The reverse is also true: If the comp has something the subject property is lacking, a negative adjustment is made to the comp for that item.
But keep in mind that although frustrating at times, the VA appraisal is a process built to protect veterans , their collateral, and the VA loan program.