Secrets of a Millionaire Real Estate Developer (Secrets of a Millionaire...)

259 Pages·2004·4.45 MB·English

by  Mark B. Weiss

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© 2005 by Mark B.Weiss
Published by Dearborn Trade Publishing
A Kaplan Professional Company
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Printed in the United States of America
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Library of Congress Cataloging-in-Publication Data
Weiss,Mark B.
Secrets of a millionaire real estate developer / Mark B.Weiss.
p. cm.
Includes index.
ISBN 0-7931-9358-3
1. Real estate development—United States. I. Title.
HD255.W393 2005
333.33′068—dc22
2004015644
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Dedication
I dedicate this book to the world of ideas.
We all have ideas.Many of us explore our ideas.Ideas are what make hu-
mankind great. Developing real estate is based on humanity’s ideas. Property
development includes creativity and functionality. If most people explored,
genuinely explored, and pursued their ideas, we would be a happier people.

C
O N T E N T S
Preface ix
Acknowledgments xi
Part I
FIRST STEPS
1. Industry Overview 1
2. Success Strategies: Self-Evaluation—Is This for You? 23
Part II
ASSEMBLE YOUR TEAM
3. Legal 39
4. Financial 55
5. Accounting 65
6. Construction, Maintenance, and Repair 75
7. Influencers and Contacts 89
Part III
ELEMENTS OF SUCCESS
8. Evaluating Real Estate 99
9. Arranging Financing 109
10. The Art of Negotiation 127
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viii
CONTENTS
11. How to Read and Write a Contract 141
12. Taxes 153
13. Government Relations: Working with Local, State, and
Federal Governments 163
14. Insurance 171
15. Advertising and Public Relations 181
16. Secrets of the Business You Won’t Hear from
Anyone Else 197
Appendixes 203
Glossary 211
Index 229
P
R E F A C E
I started in the real estate business as a young agent specializing in com-
mercial sales.I would,on occasion,be introduced to “real estate developers.”
When I met these people, I was awestruck. I was meeting the people whom
I had read so much about in the real estate press. These were the entrepre-
neurs who built Chicago. Real estate developers were at the top of the real
estate food chain.
In the early 1990s, I was invited to join the Lincoln Park Builders Club
of Chicago, and, as part of the “getting to know you process,” I was invited
to attend their annual November Real Estate Forum. I was almost knocked
over by being shoulder to shoulder with the real estate who’s who in
Chicago. Obviously, I held these people in high esteem. A magic surrounded
them. I never thought that I could be a member of this elite group. Not just
the Lincoln Park Builders Club, but the club of real estate developers.
Over the years,I have become a well-respected member of both groups,
and so can you! The real estate developer’s club is worth joining. If Donald
Trump in this generation is the person most recognized as a national real es-
tate developer, it’s because he has a great publicist and is a third-generation
real estate developer.Those are great assets, but you don’t need them to join
the club.
You’ve never heard of most real estate developers. In fact, years before
Trump worked in New York, someone else had a dream about Manhattan Is-
land. We rarely hear his name. In fact, he was discussed in an article I read
while writing this book,and at the time I was not familiar with his name.I’m
almost sure if you heard his name,you would make no connection with who
he is or what he did. Do you know Peter Minuit? More about him later, but
developers in Chicago—such as Hal Lichterman, Dan McLean, Evan Oliff,
Rich Greenburg, Rich Wenxer, Harry Langer, Ron Shipka, Mark Olshanksy,
Earl Malisoff, Lou Supera, Jim Crab, Patty Craig, Pat Fitzgerald, Mike Chioros,
and so, so many more—are not well known. Yet they all have had ideas that
changed the face of cities and impacted the lives of many.
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