ST“WEALTH BUILDING IN THE 21 CENTURY”
FALL PROFESSIONAL CONFERENCE
Mr. Robert J. Nahigian, FRICS, SIOR, CRE Auburndale Realty Co.
P.O. Box 66125
335 Auburn Street
Newton, Massachusetts 02466
Any reproduction or use of this material without the expressed written consent of Robert J. Nahigian or his legal counsel is
STATEMENT OF QUALIFICATIONS
ROBERT J. NAHIGIAN, FRICS, SIOR, CRE
Auburndale Realty Company
P.O. Box 66125
335 Auburn Street
Newton, Mass. 02466
Real Estate Career: Robert J. Nahigian, FRICS, SIOR, CRE has thirty-four years of real estate
experience with twenty-six years exclusively in commercial and industrial
as a developer, advisor, expert witness and broker of approximately $4.5
billion of real estate totaling 35 million square feet. He is recognized as a
national leader in his industry; a frequent speaker; and invited columnist to
Real Estate Specialty: Advisory/Counseling, Commercial Sales, Leasing, Court Testimony,
Build-to-Suits & Corporate Representation
Experience: Mr. Nahigian is Principal of Auburndale Realty Co. He provides
brokerage/advisory and expert testimony services to public agencies,
investment portfolio groups and corporations in New England, Missouri,
Ohio, California and Florida. He has been appointed to the Mass. Highway
Real Estate Valuation Review Board by Gov. Romney.
Client List: Rob has held assignments with such notable entities as AT&T, Warren
Buffet‟s Berkshire Hathaway Real Estate Group, Archdiocese of Boston,
Goldman, Sachs/Archon Group, MassDevelopment, Rizzo Associates,
Ryder Dedicated Logistics, N. Bennet Street School, Mass. Attorney
General, Weyerhaeuser Corp, CB Richard Ellis, and Legg, Mason.
Court Experience: Worcester County Superior Court, Suffolk County Superior Court,
Massachusetts Superior Court and Bristol County Superior Court. Previous
Employment: Formerly, Mr. Nahigian was Director, Office/Industrial Division of The
Robbins Group in Cambridge, Massachusetts. Previous he was Vice-
President of The Norwood Group in Burlington, Massachusetts. He was a
City Planner in Bowie, Maryland; a planner with Perkins & Will, New
York City and a junior planner with the Bethlehem (PA) Redevelopment
Affiliations: Rob has earned the highest commercial real estate designations, FRICS,
SIOR and CRE and has been elected to Lambda Alpha International, an
honorary land economic society. Rob is the 2006 Mass. State Chairman of
the Commercial-Investment Council and has served as the CRE National
Chair, Public Relations Committee and on the National Board of Directors.
He serves (d) on MAR/GBREB Committees; Govt. Affairs; Agency Law;
Education Curriculum; Worcester Board Ed Task Force; the Board of
Directors of the New England Chapters of SIOR/LAI/CRE and Boston‟s
Commercial Broker‟s Association. Rob is a member of the Real Estate
With SIOR, Mr. Nahigian serves as National Faculty Chair and was
National Education Chair, New England Chapter President, National Co-
Chair, 2001 Boston Convention; National Budget & Finance Committee;
National Nominating Committee; National Committee VP; NE Regional
Vice-President; National Executive Committee; National Board of
Directors; and EdFund (ex officio).
Accomplishments: Rob has been the recipient of several national and regional awards. Rob
was awarded “2005, 2004 and 2003 Advisory Assignment of the Year,”
“2001 Industrial Deal of The Year”; “Distinguished Achievements in
Commercial Leasing and Nominated as Boston‟s CBA “2003 Boston‟s
Commercial Broker of the Year”. He was honored by Banker &
Tradesman as “Top 125 Business Leaders in Massachusetts”; and featured
as “Movers and Shakers of Real Estate”; “People to Watch in New
England Real Estate”; “Who‟s Who in New England Real Estate”;
“Who‟s Who in the East”; “Who‟s Who in America” and “Who‟s Who in
Residential and Commercial Real Estate” by various publications. Rob
was awarded the 2004/2003/2002/1994 SIOR National Instructor of the
Year and Nominated by WRAR as the “2003 Mass. Educator of the Year”.
Rob is a NAR Mass. Certified Real Estate Mediator, has served as an
Arbitrator and is a Certified Real Estate Instructor in Mass. and various
Lectures: Mr. Nahigian is a one of the industry‟s sought after national speakers. He
is a Senior Lecturer at Boston University, SIOR and MAR and has
lectured at Harvard, MIT, Northeastern, Rutgers, Lehigh and DePaul
Universities. Mr. Nahigian is an invited speaker in the United States,
Canada, Mexico, South America and Europe by SIOR, Colliers, CB
Richard Ellis, NAI, FIABCI, ONCOR, CoreNet, CCIM, NAIOP, CRE,
Mexico AMPI, Latin American Real Estate Conference and other realtor
associations. Mr. Nahigian has co-authored four real estate books and over
200 professional articles.
Education: Mr. Nahigian received his BA from Lehigh University and holds a
Masters in Urban Planning from Columbia University. Rob is a Mass.
Licensed Trainee Appraiser and Licensed Real Estate Broker in Mass. and
Do not rely on the accuracies of any of the information provided. The broker/student should contact professionals, legal counsel or experts on updates, corrections or revisions on any information provided herein and to seek advice.
As a further disclaimer, the information provided in this course is for educational experiences only. Any names or information are for educational purposes only and should not be relied upon for professional or legal purposes or to aid in a business decision in real estate or any other field.
INVESTMENT REAL ESTATE OUTLINE
01. Definition of Investment Choices
02. Real Estate Cycles
03. Measuring Investment Performance
04. Creating Investment “Seed” Money
; How is it Created?
05. Entrance/Exit Strategies
06. Benchmarks for Returns and Valuation
07. Investor Behavorial Research
08. The 3 Key Variables to Accumulate Wealth
09. Real Estate Advantages/Disadvantages
10. The Composition of Overall Yield in Real Estate
As a result of this investment module, the investment real estate broker will be exposed to the history of risk, yield and valuation that will assist an entrepreneur client in developing valuation, entrance and exit strategies for possible acquisition or disposition of income-producing properties.
INVESTMENT REAL ESTATE ORGANIZATIONS AND SUGGESTED BOOKS
1. Society of Industrial and Office Realtors (SIOR)
1201 New York Ave, NW
Washington, DC 20005
2. The Counselors of Real Estate (CRE)
430 North Michigan Avenue
Chicago, Illinois 60611-4089
3. Certified Commercial Investment Member (CCIM)
430 North Michigan Avenue
Chicago, Illinois 60611-4092
4. “Crittenden Directory of Investors”
Crittenden Publishing, Inc.
P.O. Box 1150
Novato, CA 94948
5. National Council of Real Estate Investment Fiduciaries (NCREIF)
(Statistics on commercial properties in U.S.)
Two Prudential Plaza
180 North Stetson Ave, Ste 2515
Chicago, IL 60601
by Dr. Gary Shilling
7. “Roaring 2000s”
“Roaring 2000s Investor”
by Harry Dent, Jr.
8. “Millionaire Next Door”
by Dr. Tom Stanley and Dr. Bill Danko
9. „Richest Man in Babylon”
by George S. Clason
10. “The Wealthy Barber”
by David Chilton
11. “Millionaire’s Mind”
by Dr. Tom Stanley
12. “Total Wealth”
by Mac Barnes
13. “Mystery of Capital”
by Prof. Hernando De Soto
14. “The Intelligent Investor”
by Benjamin Graham
15. “Against The Gods”
by Dr. Peter Bernstein
16. “Pig in the Python”
by David Cork
17. “Bobos in Paradise”
by David Brooks
18. “The Warren Buffet Portfolio”
by Robert Hagstrom
19. “Learn to Earn”
by Peter Lynch
20. “The Street Addict”
by Jim Cramer
21. “Getting Loaded”
by Peter Bielagus
I. DEFINITION OF INVESTMENTS
; How are investment choices defined?
STOCKS REAL ESTATE
BUY A VENTURE COMMODITIES
REAL ESTATE CYCLES
Hotels ???? PEAK Retail
THE HERD OR VIC EFFECT
BUY LOW/SELL HIGH
I. MEASURING INVESTMENT PERFORMANCE
Understanding and Calculating the Concepts of Value
1. The Big Picture: Why Do People Invest and Why in Real Estate?
; Making An Income
; Biggest consumption category: Two Unique Categories that Drive the Need for the
; Income vs. Wealth: There is a Difference!
; The Profile of Today‟s Millionaire/Investor
; Who are the real estate investors?
3. Investment Definition Formula
; “Discretionary Income Invested in a Commodity to Reach a Future Consumption”
; Returns Required to Double Your Investment: Why Double?
; The Art of Saving: 2/10 Rule
; Investor‟s Magic Compounded Rate: 14 7/8% Why?
; Can you compound with real estate assets?
; Global Savings Rate: US vs. Other Countries
; The most likely real estate investors
4. “Entrance” Strategies
; Examples of “Entrance” and “Exit” Strategies
; Why both are important to formulate “yield returns”?
; Taurus News (Oct-Dec.2004) of Newton, Mass. “We are not in the real estate business,
rather we are active in real estate so that by careful management we achieve yield for our
investors and a profit for Taurus. So it will be in 2005.”
5. Today‟s Benchmark for Determining Real Estate Investment Returns:
; It‟s constantly changing
; Critical Variable in establishing yields
6. Risk vs. Reward; It‟s Evolution to Real Estate
; Who Defined Risk? Year 1654
; Required “Yield” spreads with investments
; Risk Definition
7. Investor Behavioral Research
; How behavioral science effects value
; Group behavior is important. People react fast to bad news and too slow to good news.
; Risk Adverse v. Loss Adverse
8. Real Estate Investment Rules:
; An investor expecting above-average risks should demand above-average gains
; An inefficient real estate portfolio is one that exposes the investor to a level of risk
without equal return
; To achieve a greater return is to incur additional risk or be forces to go out further on the
capital market line.
; If you want less risk, then step down the capital line and receive less return.