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The United States has recovered from the Great Recession, which started in December 2007, ran through 2009, and resulted in the loss of 8.9 million jobs. As this book goes to press in early 2017, the current economic revival has pumped life into the real estate arena, which is an important driver of the economy. Interest is at historically low rates – a great thing for borrowers – and commercial real estate is red hot. People seeking to grow their wealth without relying on the volatility of the stock market are finding that income properties are a better investment than ever.

Good quality income properties in top locations remain vibrant and healthy – and these are the kinds of properties that I spotlight in this book. They comprise apartment buildings, small shopping centers, office buildings, and industrial properties. Even if the country dips into another recession, Big Six properties will remain in strong demand.

As far back as I can remember, the demand for top-grade properties has always exceeded the supply – and it is no different today than it has been in the past. These types of properties are hard to find because only a small percentage of owners will sell them. However, buying one of these top-grade properties does not guarantee that you will make money. That will come from those properties among them that meet the Big Six criteria, which is the focus of this book. The Big Six is a formula that I developed many years ago. Using it will virtually ensure your success and bring you great wealth, just as it has done for me.

I started my own career with $300, and since 1975 I bought and sold $500 million in income-producing real estate. It was because of my drive and adherence to the Big Six formula that I eventually became financially independent. I am going to share with you the strategies and techniques that brought me success throughout my career. And I will also tell you about my setbacks. By the time you finish reading this book you will have the tools to achieve your own success – most likely in a shorter period of time than it took me.

I realize that this book will be read by a wide spectrum of people, including investors and potential investors, some with a small amount of cash to invest and others with substantial financial resources. I will be principally dealing with income properties in the price range of $500,000 to $5 million. Additionally, I will be using the terms income properties and commercial properties. They are synonymous, as are net operating income and net income.

The public and the media think of real estate as homes and condominiums, but real estate is much more than that. The best kept secret in America is that fortunes are being made every day in income-producing real estate – not just by the rich, but by people who started off buying little apartment buildings, neighborhood shopping centers, small office buildings, and clusters of small warehouses. They started investing in a single $500,000 building, with as little as $50,000 to $100,000 in cash, and then began to buy more and more buildings.

Ride up and down any street in the country and observe the small commercial buildings that dot the American landscape. These buildings are not owned by real estate moguls but by entrepreneurial people who got the bug to become owners of income-producing real estate. They knew that commercial properties would give them far more impressive returns – and with less risk – than any other type of investment. Their goal? To become wealthy enough to live the lives of their dreams without having to work.

The book is divided into three parts. The first part reviews the basics and how to get started. It explores how income-producing real estate is superior to other investments. Most people have fears of investing in the commercial real estate market because it is unknown territory for them. I outline how to overcome those fears. And it is in this part of the book that we explore how to assemble the cash resources you'll need and where you can find the most effective educational resources as you work to become a savvy investor.

Also in the first part of the book, you will learn how to bring together a first-rate team of professionals to provide needed expertise and counsel regarding your real estate investments. Among them are the right real estate broker, attorney, and accountant. Each will prove invaluable in helping you build a portfolio of wise investments.

New investors, as well as those unhappy with the results of their past investments, should spend time soaking up the lessons provided in the opening pages. Experienced investors may know a lot about the basics, but a review can reveal new insight. As with a good golfer or tennis player, it pays to revisit the fundamentals.

In the second section of the book, I detail the criteria for identifying the right buildings to buy. These chapters contain the most important advice you'll ever receive, including how to finance deals with the most leverage and the best rates of return. Adherence to the Big Six formula will build your equity, cut your income taxes, and help you escalate the return on your investment. My play-by-play examples of Big Six transactions demonstrate the fine points of negotiating price and revenue considerations. They will help you understand exactly how each element of the Big Six meshes with the other components for a no-fail deal.

The third part of the book focuses on moving forward with your investment after you have closed the deal. There are many people who have never invested in commercial real estate because they say that they don't want to become landlords. They don't have to! Most successful investors do not personally manage their own properties. What most investors do is to hire a professional management and leasing company that handles everything for them. The cost of hiring such a firm usually pays for itself. Professional managers know the market inside and out and can, in many cases, increase income and reduce expenses.

The conversions of large rental apartment complexes to condominiums were the craze from 2003 until 2007. Hundreds of thousands of units were converted to condos. This came to a virtual dead end in 2007 when the economy went into a tailspin. But, as with other commercial real estate investments, incredible amounts of money can be made – with virtually no risk – via condo conversions of apartment buildings. You'll learn about that in Chapter 13.

“One Good Real Estate Investment Is Worth a Lifetime of Labor” is the title of the closing chapter of the book. This is where you will read the personal stories of four investors, each of whom became a multimillionaire from just one investment. They all started with very little money of their own.

Throughout this book I will refer to the fact that you make your money in buying – and I'll tell you why. I will also emphasize that, if you adhere to the Big Six formula, you can, within a relatively short period of time, continually increase your rate of return – to 10 percent, 20 percent, 50 percent, 100 percent, 1,000 percent, and eventually to an infinite return, which is the ultimate goal of any investor. An infinite return is so great that it is immeasurable and incalculable.

This book is designed so that you will understand what it takes to become a successful real estate investor. You won't do it overnight or by being lucky. But you will be successful if you put into action the principles and strategies of the Big Six, which will give you the tools you need. The road to riches is open to you. Seize the moment – and enjoy the journey.