Commercial real estate is much different from residential real estate. In fact, it is more beneficial than a residential real estate. Keeping in mind the fact, the rules and regulations are also different from that of residential real estate. Perhaps this is the reason why commercial real estate terminologies are much different from that of residential real estate. Check for More Information and e-Book >>> http://www.amazon.com/Dean-Graziosi/e/B002G0AYAI

1. Dean Graziosi Teaches Commercial Real Estate Key Terms: A Must to Make
a Successful Deal
Commercial real estate is much different from residential real estate. In fact, it is more beneficial than a
residential real estate. Keeping in mind the fact, the rules and regulations are also different from that of
residential real estate. Perhaps this is the reason why commercial real estate terminologies are much
different from that of residential real estate.
Dean Graziosi believes that in order to get most out of your field, it is very necessary that you must know
inner terminologies of that field. For example, you cannot survive in America without knowing English.
Similarly, you cannot survive in commercial real estate without knowing terminologies used by inner
peoples of commercial real estate.
Dean teaches his students long list of terminologies used in commercial real estate as well as residential
real estate. He says that although the list is too long, you must learn at least a few of the basic
terminologies in order to enter to the field. Dean Graziosi is an expert realtor. He has an experience of
more than twenty years in the field of real estate. He started his career as a novice, with no educational
background in real estate and no money to set a backup plan.
Dean belonged to a poor family; his parents got divorce when Dean was just three years old. He lived
with his mother and led a very struggling teenage. At the age of sixteen, he started his first business of
auto parts. After successfully performing his first real estate deal at the age of eighteen, he never looked
back. His successful career life is supported by a complete family life.
Dean believes that one must never lose courage. Hard circumstances are just like a dark night, there is a
bright sunny morning waiting after every dark night. He gives courage to other strugglers. He believes in
hard work and self-determination. According to Dean, there is no shortcut, you get it or you miss it.

2. Following his footstep, let us have a look on basic terminologies used by insiders of commercial real
estate.
Net Operating Income:
It is also used as NOI.
It is value of the property.
The Net Operating Income of commercial real estate is calculated by valuating property's first
year gross operating income and then subtracting operating expenses for the first year.
In order to have a positive property valuation, you must have positive NOI.
Cap Rate:
"Cap" is the capitalization rate of any real estate property.
It is used to calculate rate of income producing properties.
For example, five unit apartment complex, commercial office building, smaller strip malls are
good example to get an idea of cap rate determination.
Cap Rate is also used to calculate Net Present Value of the property's future net profits or
cash flows.
The overall procedure is also known as Capitalization of earning.
Cash on Cash:
This process is used by most of the professional commercial realtors to evaluate first year performance
of competing properties. Those who usually rely on statistics to calculate value and profit generated by
the properties use it. Other characteristics of Cash on Cash are as follows:
The owner does not need 100% cash to purchase the property.
The owner will not take all of the NOI.
The owner must pay mortgages from earned NOI.
In order to uncover Cash on Cash, investor must determine amount required to invest to
purchase the property.
Check for More Information and e-Book >>>
http://www.amazon.com/Dean-Graziosi/e/B002G0AYAI