Welcome back to the Diversified Income Experiment Podcast! In this episode, we are going to talk about how commercial developers make tons of dough! I am going to tell you the step-by-step process of how these developers make massive amounts of money through commercial real estate. I am also going to walk you through a sample computation, so you can have a solid grasp of how big this can be for you. Ready? Listen in!

[00:01 – 06:39] How Commercial Developers Make Tons of $$

- What is a commercial developer?
- How commercial development works
- How much money commercial developers make
- Capitalization rate: What is it?

[06:40 – 22:19] Doing the Math

- The three variables
- Value of the building
- Annual amount of lease payments
- Cap rate
- A sample computation
- Making a million dollars through commercial development
- How this model can be related to a carwash project


Tweetable Quotes:

“This is how giant enterprises are created through real estate. When you hear people [say that] you’ve got to own the real estate if you're going to own one of these franchise deals or going to own one of these little businesses, that you’ve got to own the land, this is why. Because you can sign yourself up to be the tenant for that as opposed to the owner, and then sell the building, raise a sh*tload of capital, pay off the debt, and lots of cases after you pay off the debt, you still have lots of capital left to go to the next project.” - Keith Leimbach

“I hope you go do something awesome because you should, because if you let the day expire without doing something great, you just lost a day. So come on now, go get something done.” - Keith Leimbach


I WOULD LOVE TO HEAR FROM YOU! If you have questions, comments, or want to talk about life-changing opportunities, reach out to me through LinkedIn /in/keithleimbach, send me an email at [email protected], or visit https://dincpie.com/