Category: Commercial Property Advisor
-
Property Research
Before Buying Here are some questions an investor should ask owners before buying an older Class C or less apartment building: About the building: About the tenants: About the neighborhood: About the owner: In addition to these general questions, investors should also ask specific questions about the building and neighborhood that are relevant to their…
-
5 Key Factors to Consider When Choosing a Real Estate Location
Location3 Location, location, location. It’s a mantra drilled into the heads of every aspiring real estate investor, and for good reason. A property’s location can make or break its value, often trumping even the most impressive property itself. So, when it comes to choosing where to invest your hard-earned cash, it’s crucial to do your research and identify a winning location. In a Nutshell…
-
Are You A Real Estate Professional?
Like most questions, the answer is that it depends. Real estate investors should pay close attention to whether they are materially involved in the property or act only as a passive investor. While there are benefits to being a RE professional, many of the same benefits derive from business ownership. Key take-aways: No, having a…
-
Real Estate Mastermind Topics
What are the topics and concerns that you and your trusted advisors should be discussing? Concerns about your business or asset type. Here are some good mastermind topics suitable for real estate investors: General Investing Specific Investment Strategies Market Trends and Analysis Business and Marketing Legal and Tax Considerations Personal Development You can also choose…
-
Creative NOI Boosters: Maximize Your Commercial Property’s Income
In a Nutshell Beyond traditional rent increases, there are numerous creative ways to boost income from your commercial real estate property. Here are some ideas, categorized by type: 1. Leverage Underutilized Space: 2. Offer Value-Added Services: 3. Cater to Niche Markets: 4. Enhance Tenant Experience and Loyalty: 5. Embrace Technology: Examples: Remember, the key is to think outside the…
-
CRE Investment Analysis: A Financial Calculator Guide
In a Nutshell Here are some key questions that can be answered related to commercial real estate using a financial calculator, along with their significance and steps to calculate them using the BA II professional financial calculator app: 1. Mortgage Payments: What will my monthly mortgage payments be? Importance: Determines affordability and cash flow management. Steps…
-
Unlocking Value: The Power of Proactive Blend and Extend Leases
In a Nutshell Why would anyone voluntarily pay to have increased rent? The answer from the landlord side is simple and can be found when considering PV (present value) versus FV (future value) of income. The immediate increase in NOI can make such an action very useful if one is considering a sale of the…
-
How NOI Affects Commercial Property Prices
In a Nutshell An increase in net operating income (NOI) generally leads to a higher price for an apartment building or other commercial real estate property. The impact of an additional $10,000 on NOI, however, isn’t a simple one-to-one ratio and depends on several factors: Capitalization Rate: Investors use a metric called the capitalization rate (cap rate) to estimate…
Are You Accepting New Customers?
