Ray Alcorn
Ray Alcorn is an active investor who averages over $10 million in deals per year. He has over 25 years of experience in owning, developing and managing commercial real estate of all kinds, including mobile home parks, single-family subdivisions, apartments, hotels, restaurants, office buildings, shopping centers and multi-use projects. When not writing books and causing mayhem on internet newsgroups, Ray is the Chief Operating Officer of and a principal in Park Real Estate, Inc., a real estate development and investment firm with headquarters in Blacksburg, Virginia.
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What’s it Worth?- Deriving YOUR Capitalization Rate
March 12, 2020
How do you know what an income property is worth? How do you know that if you pay X amount for a property that you can get the return you desire on your investment? Is there some way to calculate the maximum you can pay for an investment and still achieve your investment goals? Do …
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Upside Deals: Building a Money Pump
March 12, 2020
The quickest way I know to make significant profits with commercial real estate is to do deals with substantial upside potential. But first let’s define “upside”. I’m not talking about a paper increase in value due to scheduled rental increases, or replacing “below-market” leases, as many for-sale brochures define the term. My definition of upside …
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Redevelopment and Change of Use Deals – Making Silk From a Sow’s Ear
March 12, 2020
Redevelopment and change-of-use is one of my favorite deal strategies. Many properties are functionally obsolescent, or the market has passed them by for that property type. These properties are often producing income, but not at the level of the highest and best use of the land. A reader sent me a good example recently. The …
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Real Estate Investing in a Rising-Rate Environment
March 12, 2020
(This article was written by Ray Alcorn in 2000) With interest rates headed upward yet again with the latest round of belt tightening by the Federal Reserve, and the stock market falling with no bottom in sight, many people are crying doom and gloom. I hear talk of watching for a rise in foreclosures due …
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Outlook for Mobile Home Parks:2007 and Beyond
March 12, 2020
Question: How Will The Housing Downturn Affect Mobile Home Parks (MHPs)? In my view the worst that can happen for MHPs has already occurred. Low rates and easy money for traditional housing; an industry-wide meltdown of chattel lenders for single and multi-section homes without land; and a resulting decrease of production levels to fifty year …
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New Regulations Effecting Commercial Real Estate
March 12, 2020
New ADA (Americans with Disabilities Act) regulations went into effect on March 15, 2012. Most (close to 100%) of the commercial real estate owners I mention this to are completely unaware that the new regs are in effect. The complete copy of the act and supplemental material can be found at Revised ADA Regulations Implementing …
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100% Financing: Feeding the Desire to Acquire
March 12, 2020
At least once a week, someone posts to the commercial newsgroup seeking a way to finance 100% of the acquisition cost for an income property. I suppose it is fueled by the late night infomercials touting no money down deals and using pictures of Class A apartment buildings, never saying the one describes the other, …