Connecticut Commercial Real Estate

In the world of business, Connecticut is well known. An interesting variety of businesses abound in this area. From home businesses to financial district companies to tourism related ventures, it seems that there is a little bit of every kind of business in this state. That is why Connecticut commercial real estate is flourishing.

What is Connecticut commercial real estate?

Connecticut commercial real estate are pieces of land intended for business or industrial purposes. The piece of land could have a building on it or it could be a farm, an apartment, or even an office.

This does not necessarily mean that these commercial real estate properties in Connecticut are all located in the busy sections and in the financial districts of the area. The fact is that one could actually find Connecticut commercial real estate in the suburban areas as well as in the bigger cities.

Are there any types of Connecticut commercial real estate?

There is a wide range of Connecticut commercial real estate. Land in this location is used for various commercial and business purposes. These includes bars, clubs, offices, schools, showrooms, company offices, beauty salons, malls, department stores, restaurants, gas stations, ranches, farms, hospitals, clinics, gyms, and factories among many others.

Where can one find Connecticut commercial estate properties?

If you have a trusted real estate agent who is knowledgeable in Connecticut commercial real estate, you can seek his or her help. Or you can also ask Connecticut real estate companies regarding this.

However, you can also try using your favorite search engine to look for these on the Internet. There will be many listings, but you can sift through the information to find the ones that would suit your preferences and needs.

Due Diligence Checklists – For Commercial Real Estate Transactions

Planning to purchase or finance Commercial or Industrial Real Estate? Shopping Center? Office Building? Restaurant/Banquet property? Parking Lot? Storefront? Gas Station? Manufacturing facility? Warehouse? Logistics Terminal? Medical Building? Nursing Home? Hotel/Motel? Pharmacy? Bank facility? Sports and Entertainment Arena? Other?

A KEY to investing in commercial real estate is performing an adequate Due Diligence Investigation to assure you know all material facts to make a wise investment decision and to calculate your expected investment yield.

The following checklists are designed to help you conduct a focused and meaningful Due Diligence Investigation.

Basic Due Diligence Concepts:

Commercial Real Estate transactions are NOT similar to large home purchases.

Caveat Emptor: Let the Buyer beware.

Consumer protection laws applicable to home purchases seldom apply to commercial real estate transactions. The rule that a Buyer must examine, judge, and test for himself, applies to the purchase of commercial real estate.

Due Diligence: “Such a measure of prudence, activity, or assiduity, as is proper to be expected from, and ordinarily exercised by, a reasonable and prudent [person] under the particular circumstances; not measured by any absolute standard, but depending upon the relative facts of the special case.” Black’s Law Dictionary; West Publishing Company.

Contractual representations and warranties are NOT a substitute for Due Diligence.

Breach of representations and warranties = Litigation, time and money.

WHAT DILIGENCE IS DUE?

The scope, intensity and focus of any due diligence investigation of commercial or industrial real estate depends upon the objectives of the party for whom the investigation is conducted. These objectives may vary depending upon whether the investigation is conducted for the benefit of (i) a Strategic Buyer (or long-term lessee); (ii) a Financial Buyer; (iii) a Developer; or (iv) a Lender.

If you are a Seller, understand that to close the transaction your Buyer (and its Lender) must address all issues material to its objective – some of which require information only you, as Owner, can adequately provide.

GENERAL OBJECTIVES:

(i) A “Strategic Buyer” (or long-term lessee) is acquiring the property for its own use and must verify that the property is suitable for that intended use.

(ii) A “Financial Buyer” is acquiring the property for the expected return on investment generated by the property’s income stream, and must determine the amount, velocity and durability of the revenue stream. A sophisticated Financial Buyer will likely calculate its yield based upon discounted cash-flows rather than the must less precise capitalization rate (“cap rate”), and will need adequate financial information to do so.

(iii) A “Developer” is seeking to add value by changing the character or use of the property – usually with a short-term to intermediate-term exit strategy to dispose of the property; although, a Developer might plan to hold the property long term as Financial Buyer after development or redevelopment. The Developer must focus on whether the planned change is character or use can be accomplished in a cost-effective manner. A developer conducting due diligence will focus on issues involving market demand, access, use and finances.

(iv) A “Lender” is seeking to establish two basic lending criteria:

1. “Ability to Repay” – The ability of the property to generate sufficient revenue to repay the loan on a timely basis; and

2. “Sufficiency of Collateral” – The objective disposal value of the collateral in the event of a loan default, to assure adequate funds to repay the loan, carrying costs and costs of collection in the event forced collection becomes necessary.

The amount of diligent inquiry due to be expended (i.e. “Due Diligence”) to investigate any particular commercial or industrial real estate project is the amount of inquiry required to answer each of the following questions to the extent relevant to the objectives of the party conducting the investigation:

I. THE PROPERTY:

1. Exactly what PROPERTY does Purchaser believe it is acquiring?

(a) Land?

(b) Building?

(c) Fixtures?

(d) Other Improvements?

(e) Other Rights?

(f) The entire fee title interest including all air rights and subterranean rights?

(g) All development rights?

2. What is Purchaser’s planned use of the Property?

3. Does the physical condition of the Property permit use as planned?

(a) Commercially adequate access to public streets and ways?

(b) Sufficient parking?

(c) Structural condition of improvements?

(d) Environmental contamination?

(i) Innocent Purchaser defense vs. exemption from liability

(ii) All Appropriate Inquiry

4. Is there any legal restriction to Purchaser’s use of the Property as planned?

(a) Zoning?

(b) Private land use controls?

(c) Americans with Disabilities Act?

(d) Availability of licenses?

(i) Liquor license?

(ii) Entertainment license?

(iii) Outdoor dining license?

(iv) Drive through windows permitted?

(e) Other impediments?

5. How much does Purchaser expect to pay for the property?

6. Is there any condition on or within the Property that is likely to increase Purchaser’s effective cost to acquire or use the Property?

(a) Property owner’s assessments?

(b) Real estate tax in line with value?

(c) Special Assessment?

(d) Required user fees for necessary amenities?

(i) Drainage?

(ii) Access?

(iii) Parking?

(iv) Other?

7. Any encroachments onto the Property, or from the Property onto other lands?

8. Are there any encumbrances on the Property that will not be cleared at Closing?

(a) Easements?

(b) Covenants Running with the Land?

(c) Liens or other financial servitudes?

(d) Leases?

9. Leases?

(a) Security Deposits?

(b) Options to Extend Term?

(c) Options to Purchase?

(d) Rights of First Refusal?

(e) Rights of First Offer?

(f) Maintenance Obligations?

(g) Duty on Landlord to provide utilities?

(h) Real estate tax or CAM escrows?

(i) Delinquent rent?

(j) Pre-Paid rent?

(k) Tenant mix/use controls?

(l) Tenant exclusives?

(m) Tenant parking requirements?

(n) Automatic subordination of Lease to future mortgages?

(o) Other material Lease terms?

10. New Construction?

(a) Availability of construction permits?

(b) Utilities?

(c) NPDES (National Pollutant Discharge Elimination System) Permit?

(i) Phase 2 effective March 2003 – Permit required if earth is disturbed on one acre or more of land.

(ii) If applicable, Storm Water Pollution Prevention Plan (SWPPP) is required.

II. THE SELLER:

1. Who is the Seller?

(a) Individual?

(b) Trust?

(c) Partnership?

(d) Corporation?

(e) Limited Liability Company?

(f) Other legally existing entity?

2. If other than natural person, does Seller validly exist and is Seller in good standing?

3. Does the Seller own the Property?

4. Does Seller have authority to convey the Property?

(a) Board of Director Approvals?

(b) Shareholder or Member approval?

(c) Other consents?

(d) If foreign individual or entity, are any special requirements applicable?

(i) Qualification to do business in jurisdiction of Property?

(ii) Federal Tax Withholding?

(iii) US Patriot Act compliance?

5. Who has authority to bind Seller?

6. Are sale proceeds sufficient to pay off all liens?

III. THE PURCHASER:

1. Who is the Purchaser?

2. What is the Purchaser/Grantee’s exact legal name?

3. If Purchaser/Grantee is an entity, has it been validly created and is it in good standing?

(a) Articles or Incorporation – Articles of Organization

(b) Certificate of Good Standing

4. Is Purchaser/Grantee authorized to own and operate the Property and, if applicable, finance acquisition of the Property?

(a) Board of Director Approvals?

(b) Shareholder or Member approval?

(c) If foreign individual or entity, are any special requirements applicable?

(i) Qualification to do business in jurisdiction of the Property?

(ii) US Patriot Act compliance?

(iii) Bank Secrecy Act/Anti-Money Laundering compliance?

5. Who is authorized to bind the Purchaser/Grantee?

IV. PURCHASER FINANCING:

A. BUSINESS TERMS OF THE LOAN:

What loan terms have the Purchaser, as Borrower, and its Lender agreed to?

(a) What is the amount of the loan?

(b) What is the interest rate?

(c) What are the repayment terms?

(d) What is the collateral?

(i) Commercial real estate only?

(ii) Real estate and personal property together?

(e) First lien? A junior lien?

(f) Is it a single advance loan?

(g) A multiple advance loan?

(h) A construction loan?

(i) If it is a multiple advance loan, can the principal be re-borrowed once repaid prior to maturity of the loan; making it, in effect, a revolving line of credit?

(j) Are there reserve requirements?

(i) Interest reserves?

(ii) Repair reserves?

(iii) Real estate tax reserves?

(iv) Insurance reserves?

(v) Environmental remediation reserves?

(vi) Other reserves?

(k) Are there requirements for Borrower to open business operating accounts with the Lender? If so, is the Borrower obligated to maintain minimum compensating balances?

(l) Is the Borrower required to pledge business accounts as additional collateral?

(m) Are there early repayment fees or yield maintenance requirements (each sometimes referred to as “pre-payment penalties”)?

(n) Are there repayment blackout periods during which Borrower is not permitted to repay the loan?

(o) Is there a Loan Commitment fee or “good faith deposit” due upon Borrower’s acceptance of the Loan Commitment?

(p) Is there a loan funding fee or loan brokerage fee or other loan fee due Lender or a loan broker at closing?

(q) What are the Borrower’s expense reimbursement obligations to Lender? When are they due? What is the Borrower’s obligation to pay Lender’s expenses if the loan does not close?

B. DOCUMENTING THE COMMERCIAL REAL ESTATE LOAN

Does Purchaser have all information necessary to comply with the Lender’s loan closing requirements?

Not all loan documentation requirements may be known at the outset of a transaction, although most commercial real estate loan documentation requirements are fairly typical. Some required information can be obtained only from the Seller. Production of that information to Purchaser for delivery to its lender must be required in the purchase contract.

As guidance to what a commercial real estate lender may require, the following sets forth a typical Closing Checklist for a loan secured by commercial real estate.

Commercial Real Estate Loan Closing Checklist

1. Promissory Note

2. Personal Guaranties (which may be full, partial, secured, unsecured, payment guaranties, collection guaranties or a variety of other types of guarantees as may be required by Lender).

3. Loan Agreement (often incorporated into the Promissory Note and/or Mortgage in lieu of being a separate document)

4. Mortgage [sometimes expanded to be a Mortgage, Security Agreement and Fixture Filing]

5. Assignment of Rents and Leases

6. Security Agreement

7. Financing Statement (sometimes referred to as a “UCC-1”, or “Initial Filing”)

8. Evidence of Borrower’s Existence In Good Standing; including

(a) Certified copy of organizational documents of borrowing entity (including Articles of Incorporation, if Borrower is a corporation; Articles of Organization and written Operating Agreement, if Borrower is a limited liability company; Certified copy of trust agreement with all amendments, if Borrower is a land trust or other trust; etc.)

(b) Certificate of Good Standing (if a corporation or LLC) or Certificate of Existence (if a limited partnership) or Certificate of Qualification to Transact Business (if Borrower is an entity doing business in a State other than its State of formation)

9. Evidence of Borrower’s Authority to Borrow; including

(a) a Borrower’s Certificate;

(b) Certified Resolutions

(c) Incumbency Certificate

10. Satisfactory Commitment for Title Insurance (which will typically require, for analysis by the Lender, copies of all documents of record appearing on Schedule B of the title commitment which are to remain after closing), with required commercial title insurance endorsements, often including:

(a) When available, Affirmative Creditors Rights Endorsement (extending coverage over policy exclusion 7 and policy exclusions 3(a) and 3(d) as they relate to creditor’s rights matters)

(b) ALTA 3.1 Zoning Endorsement modified to include parking

(c) ALTA Comprehensive Endorsement 1

(d) Location Endorsement (street address)

(e) Access Endorsement (vehicular access to public streets and ways)

(f) Contiguity Endorsement (the insured land comprises a single parcel with no gaps or gores)

(g) PIN Endorsement (insuring that the identified real estate tax permanent index numbers are the only applicable PIN numbers affecting the collateral and that they relate solely to the real property comprising the collateral)

(h) Usury Endorsement (insuring that the loan does not violate any prohibitions against excessive interest charges)

(i) other title insurance endorsements applicable to protect the intended use and value of the collateral, as may be determined upon review of the Commitment for Title Insurance and Survey or arising from the existence of special issues pertaining to the transaction or the Borrower.

11. Current ALTA Survey (3 sets), [typically prepared in accordance with 2011 Minimum Standard Detail for ALTA/ACSM Land Title Surveys, certified to the lender, Buyer and the title insurer.

12. Current Rent Roll

13. Certified copy of all Leases (3 sets)

14. Lessee Estoppel Certificates

15. Lessee Subordination, Non-Disturbance and Attornment Agreements [sometimes referred to simply as “SNDAs”].

16. UCC, Judgment, Pending Litigation, Bankruptcy and Tax Lien Search Report

17. Appraisal (must comply with Title XI of FIRREA (Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended)

18. Environmental Site Assessment Report (sometimes referred to as Environmental Phase I and/or Phase 2 Audit Reports)

19. Environmental Indemnity Agreement (signed by Borrower and guarantors)

20. Site Improvements Inspection Report

21. Evidence of Hazard Insurance naming Lender as the Mortgagee/Lender Loss Payee; and Liability Insurance naming Lender as an “additional insured” (sometimes listed as simply “Acord 27 and Acord 25, respectively)

22. Legal Opinion of Borrower’s Attorney

23. Credit Underwriting documents, such as signed tax returns, property operating statements, etc. as may be specified by Lender

24. Compliance Agreement (sometimes also called an Errors and Omissions Agreement), whereby the Borrower agrees to correct, after closing, errors or omissions in loan documentation.

It is useful to become familiar with the Lender’s loan documentation requirements as early in the transaction as practical. The requirements will likely be set forth with some detail in the lender’s Loan Commitment – which is typically much more detailed than most loan commitments issued in residential transactions.

Conducting the Due Diligence Investigation in a commercial real estate transaction can be time consuming and expensive in all events.

If the loan requirements cannot be satisfied, it is better to make that determination during the contractual “due diligence period” – which typically provides for a so-called “free out” – rather than at a later date when the earnest money may be at risk of forfeiture or when other liability for failure to close may attach.

CONCLUSION

Conducting an effective due diligence investigation in a commercial real estate transaction to discover all material facts and conditions affecting the Property and the transaction is of critical importance.

Unlike owner occupied residential real estate, when a house can nearly always be occupied as the purchaser’s home, commercial real estate acquired for business use or for investment is impacted by numerous factors that may affect its use and value.

The existence of these factors and their affect on a Purchaser’s ability to use the Property for its intended use and on the Purchaser’s projected investment yield can only be discovered through diligent investigation and attention to detail.

The circumstances of each transaction will determine what degree of diligence is required. The level of diligence required under the circumstances is the diligence that is due.

Indiana Real Estate Auctions – Indiana Real Estate Auctions Guide

Indiana located in the Midwest region has few large urban areas and some small industrial cities and demands for real estate in these urban areas is continuously growing. If you are looking for a suitable real estate for your business, Indiana real estate auctions are the best suitable options for you. The state is highly populated and the population is expected to grow in the coming decade. The land and real estate requirement of urban areas will continuously grow in the coming years and industrial towns and cities have all infrastructure facilities required for your business.

Some of the industrial cities of Indiana are Indianapolis, Michigan city, Fort Wayne, Gary, Anderson, Bloomington, Columbus, Elkhart, Kokomo, Lafayette, Evansville, Terre Haute and South Bend. Although all the cities are important for any business related activities, however in some of the cities the prices of real estate are continuously going in upward directions. Indiana is known for manufacturing and northwest region of Indiana is the largest steel producer. The other manufacturing includes pharmaceuticals, automobiles, electrical equipment, transportation equipment, chemical products, petroleum refining and coal production, rubber, steel and machineries.

There the state of Indiana is perfect place for your business and you will get cheap raw materials in any of the industrial towns and cities in Indiana. To get a suitable commercial plot or building through any of the Indiana real estate auction will be a right choice for you and getting it at the right location can be lot be advantageous for you in the coming years. The state of Indiana is well located in the map of United States and it is at the center of Midwest region. The cities are highly developed and will suit for your business. The most and modern infrastructure and highly developed roads, railways are interconnected with all major cities. The state has well established and cordial administration to help you.

Looking for an Indiana real estate auction is easy as you get all the information in your daily newspaper. You can also look for more information on the Indiana auctioneers websites or you can take help of search engine to look for a suitable auctioneer in Indiana. Once you are satisfied with the commercial plot or building available for sale through auction, it is advised that you physically check with the plot or building.

Indiana State provides the best opportunities for business houses and initiating a business in the urban areas is not too difficult as you get the complete support of the state or county administration. You need to have the commercial building or plot to initiate your business for which you need to bid and participate in Indiana real estate auctions and get the commercial real estate of your choice at your desired location. This is the first profitable step to start your own business and I am sure that your business will grow in this highly Industrial State of United States.

Small Business Real Estate Financing Opportunities

I had a lot of great questions come in over the past week that covered topics such as construction loan interest calculations, multifamily financing, hotel financing, and private money lenders. The one that was the most interesting concerned small business real estate financing.

Buying real estate for your small business offers you, as the business owner, several advantages over leasing. The first advantage is that financing the real estate purchase helps small businesses grow into larger businesses by preserving capital during expansion. Growing a business is a cash management balancing act and the less money buried in facilities means more money for other necessary functions.

The second advantage is tax related. Funds to support the business can be diverted to help your personal portfolio by building equity in the commercial real estate housing the business. The lease payment that benefited your former landlord is now helping you reduce current business income from a tax standpoint, yet keeping it in your pocket through your real estate. Many owners take the property in their personal names and have the business pay rent to them rent to cover the property’s operating expenses. Some even have additional tenants to supplement the cash flow.

The third advantage relates potentially to your estate. If the property is in personal name and the business is unwound, sold, or terminated for any reason, that asset is not part of the business transaction. This can simplify an otherwise complex situation.

There are two types of small business real estate loans. One is guaranteed by the Small Business Administration (SBA), the other we’ll call “conventional.” Both offer a business owner a loan amount up to 90% of the purchase price of the property used for the business. The government guaranteed financing tends to have a somewhat lower rate, but requires a great deal more paperwork. Conventional financing is the more flexible by offering different documentation requirements and potentially faster funding.

Conventional Small Business Real Estate Financing

In recent years, some lenders have created SBA “look-alike” or conventional programs that have fewer restrictions than SBA-guaranteed financing. For example, they allow the owner-user to occupy less space in the property than the 51% required by the SBA, allow for reduced or “E-Z” documentation (no tax returns), and don’t require additional collateral such as a primary residence. Depending upon the type property that is being financed, conventional small business real estate loans may allow as much as 90% loan-to-value (LTV) financing, although some special purpose property types, such as hotels, restaurants, and gas stations are limited to lower LTVs. Construction to permanent loans are also available on a conventional basis, allowing a business owner to custom design a property for the needs of the business.

The Small Business Administration

The Small Business Administration is a quasi-governmental agency established to assist small business owners obtain financing for their business operations. The primary form of collateral for SBA loan is owner-user business real estate. SBA funds can be used for a variety of purposes including the acquisition of business real estate, business property, operating capital and any other legitimate business purpose.

SBA loans are typically used for single-use or single-tenant properties where the owner of the property is the owner of the business using the property. The SBA’s rule of thumb is that 51% of the property must be used by the owner-operator to qualify for the agency’s guarantee. There are often other restrictions placed upon the owner to obtain this financing such as: Annual reporting and cross-collateralization with the owner’s primary residence. The SBA finances office buildings, retail centers, automotive centers, warehouses, light industrial (manufacturing) facilities and a host of other property types.

Most federally regulated financial institutions offer some form of SBA guaranteed financing. It’s too profitable for them to pass up. Unfortunately, not all of them are good at it.

Realistically, you should be in business at least two full profitable years and have another three to five years of history working in that business if you business if new. You’ll need to show a lender how the new property will benefit your business through projections and in particular, the SBA is always concerned with how many new employees you are likely to hire. In the final analysis, there is a wider range of financing options for the small business owner today than ever before. If the opportunity presents itself to you, small business real estate usually makes sense for both the business and to the owner as a personal wealth building tool.

Commercial Real Estate Investing – What You Need to Know

Commercial Real Estate Investing Basics

Commercial real estate investing is a terrific way to make money if you know how to invest correctly. Commercial investing means that you are making real estate transactions that don’t apply to single family homes. Instead you are investing in apartment complexes, retail properties, office buildings, educational buildings, warehouses, manufacturing facilities, etc.

There are several real estate properties that are deemed as commercial. This may even be a vacant lot were a future commercial building could be structured. Even parking lots could be considered a commercial investment. Or there is already a working business on the lot of land that you are investing in.

When you choose to get involved in commercial real estate investing, you are putting your money in a reasonably safe place. And more than likely, you will have some great returns if you are smart about your investments. This type of investing has a lot of potential for making the big bucks.

For you do to well in commercial investing, you will want to educate yourself. You can do this by attending investment seminars or courses, or even reading some do-it-yourself literature. You will want to know everything you can about what you are doing with your hard-earned money

Why Commercial Real Estate

Commercial real estate investing is really attractive because it lets investors build equity, supply rental income, and just earn money to use for your own business. Depending on what you want to do and the type of money you want to get back, there are several procedures in managing your investments and properties. You may want to consider taking more than just a few informal courses if you are serious about investing in commercial real estate. You might want to think about taking some specific classes on commercial investing.

Buying property instead of renting it will permit you to gain equity. When you own the property, you can also manage it how you want and won’t have to worry about the rules and stipulations put on you by an owner other than you.

If you are playing with the idea of commercial real estate investing you will want to do some research, educate yourself, make lists of your goals and how you can achieve them, and compare the advantages and disadvantages to help you make decisions. When you follow these steps, making the right decisions will be an easier process for you.

Real Estate Investing – The “Business Plan” and Developing a Market Analysis – Part I

Market analysis is the beginning part of your real estate investment business plan.

What Is Your Target Market?

The first question is what is your target market? These are extremely, extremely critical questions. I don’t think anybody can go through this business plan without addressing that question.

For example, it could be a town that you want to invest in. It could be a zip code. It could be an area code. It could be a part of a town or part of a county or something like Philadelphia that is a very large city. I don’t know how many people we have, 4 or 5 million people, something like that, but Philadelphia is broken up into probably 80 or 90 different neighborhoods. If you wanted to invest, you’d probably pick two or three neighborhoods – that’s it.

As a small real estate entrepreneur, you certainly would not be investing in “Philadelphia.” That’s way too large and way too diverse. There are low-end sections of Philadelphia and there are extremely high-end areas. You would pick two or three neighborhoods that you’d want to invest in. Again, you’d know every single street. You’d know what the prices are. You’d know what the rents are. You’d be the expert.

Narrow Down Your Target Area

Again, try to narrowly define your target area. Where is it? I would estimate that you’d probably need to pick an area that is anywhere from 15,000-30,000 houses. That is a nice size community – not too large, not too small. There should be plenty of deals within a community of 15,000 to 30,000 houses. I would not suggest that you start looking at cities with 500,000 or more. That’s just way, way too big. There’s no way you can become an expert on that area.
The whole point here is, as a private lender, why would I want to invest with you? If you’re not the expert and you don’t have the specialized skill or expertise, if you’re going to be all over the world and have no special skills, why would I want to invest with you? If you tell me, “I’m only going to invest in this small little community, and I know the last 10 sales on that street, and I know what they average,” now you’re starting to pique my interest. Now you’ve demonstrated that you’ve got some really specialized skills, so that’s why we go through this process.

Other Things to Consider

Other things you’re going to need to address –

· What types of properties are you going to be buying?
· Are you going to be buying single-family homes?
· Are you going to be buying duplexes?
· Are you going to be buying apartment buildings?
· Are you going to be doing commercial buildings?
· Are you going to be doing small strip malls?
· Are you going to do multi-unit buildings with commercial at the bottom and residential at the top?

It’s not important what you pick. It’s whatever you think you’re good at and you like. But it’s important that you do define what that is. I don’t want you saying, “I buy real estate.” That’s not really meaningful to anybody. I want to hear, “I buy apartment buildings with anywhere from 10 to 25 units in this town. That’s the type of real estate investor that I am.”

So again, think that through. Define it. You’re going to hear that all through this process, I want you to narrow down your focus. I do not want you to expand your focus bigger because you’re afraid of losing a deal 50 miles away. There are plenty of deals close by. You do not need to go far away.