Search results “Value for commercial property”
Commercial Real Estate - How to Value a Property
We talk about 3 valuation methods in this video - Sales Comparison, Capitalization, and Replacement Cost Methods. Each has its own use, and appropriate circumstances.
Views: 125561 InvestRelevant
How to Value your Commercial Property For Sale | Commercial Real Estate Advice – Tiner
How To Value Your Commercial Property For Sale Establishing fair market value has a consistent process that can yield a very reliable valuation result. Review the properties improvements locations and how it fits in the competitive nature of the real estate marketplace. Haw does the property perform as an investment? Are they national corporations or local start-ups? Commercial Real Estate Advice from two experts in the Commercial Real Estate field, Ben Tiner and Tony Wood. About Ben Tiner: After earning his Managerial Economics degree from U.C. Davis, Ben joined the commercial team at Tiner Properties in 2005 as a Commercial Asset Manager. Ben is a licensed California Real Estate Broker and actively manages the Commercial Portfolio of an estimated Three million square feet of retail, office, medical, and industrial space throughout the Greater Sacramento Area. He is active in both the sale and leasing of commercial property. Ben's clients include the Government Services Administration (GSA), CarQuest, Sprint, Subway, medical practitioners and investment holding companies. Ben is driven by his passion for every client, property and transaction he is involved with. Ben's book "Commercial Property Leasing" is an essential tool for everyone involved with commercial real estate. Ben's most recent achievement is earning his Certified Commercial Investment Member (CCIM) designation. About Tony Wood: Tony Wood is well known for his market insights and signature “Forensic Approach” to commercial real estate transactions. For over 30 years Tony has specialized in a wide spectrum of commercial real estate services. With extensive experience in all real estate property types and ownership structures, Tony’s experience includes the leasing and sale of office, retail, industrial, investment and owner-user properties throughout the Western United States. His consulting services encompass valuation, market studies and transactional trusted advisor. He is retained as a professional witness and consultant to banks, law firms, insurance companies and CPAs. Tony is motivated by the difference he can make in each transaction. Tiner Commercial Real Estate services the Greater Sacramento Area with Property Management, Sales and Leasing. Website: www.tinercommercial.com Phone: 916-999-3900
Commercial Property Valuation and Returns in India
How to estimate the right valuation for a Commercial Property and what kind of rental returns can you expect from a Commercial Real Estate in India? Let's understand the three methods to value a commercial property in India. Explained in Hindi. Related Videos: Commercial Property Investment: https://youtu.be/QGfQMqPc9kE 1. Fair Market Value of a Commercial Property in India 2. Rental Yield Method or Gross Rent Multiplier Method for a Commercial Real Estate in India 3. Land and Building Method for an Indian Commercial Property किसी कमर्शियल प्रॉपर्टी की सही वैल्यू कैसे एस्टीमेट करें और किस प्रकार के रेंटल रिटर्न्स आप इंडिया में कमर्शियल रियल एस्टेट प्रॉपर्टी से एक्सपेक्ट कर सकते हैं? चलिए समझते हैं इंडिया में कमर्शियल प्रॉपर्टी के मूल्य का आंकलन करने की 3 विधियां। 1. इंडिया में कमर्शियल प्रॉपर्टी की फेयर मार्केट वैल्यू 2. इंडिया में कमर्शियल प्रॉपर्टी के लिए रेंटल यील्ड मेथड या ग्रॉस रेंट मल्टीप्लायर मेथड 3. इंडिया में कमर्शियल प्रॉपर्टी के लिए लैंड एंड बिल्डिंग मेथड Share this Video: https://youtu.be/Hvf7kSwgpDE Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: How to buy commercial property in India? How to evaluate the value of any commercial property in India? What type of returns can you expect from commercial real estate property? How much rental returns can be expected from a commercial property in India? What are the methods to evaluate the price of any commercial property? What evaluation methods are used to evaluate the price of commercial property in India? How to calculate the right price of a commercial property in India? इंडिया में कमर्शियल प्रॉपर्टी कैसे खरीदें? इंडिया में किसी भी कमर्शियल प्रॉपर्टी के मूल्य का मूल्यांकन कैसे करें? किसी कमर्शियल रियल एस्टेट प्रॉपर्टी से आप किस तरह के रिटर्न की उम्मीद कर सकते हैं? इंडिया में एक कमर्शियल प्रॉपर्टी से कितनी रेंटल रिटर्न की उम्मीद की जा सकती है? किसी कमर्शियल प्रॉपर्टी की कीमत का मूल्यांकन करने के क्या-क्या तरीके हैं? इंडिया में कमर्शियल प्रॉपर्टी की कीमत का मूल्यांकन करने के लिए किन मूल्यांकन विधियों का उपयोग किया जाता है? इंडिया में किसी कमर्शियल प्रॉपर्टी की सही कीमत की गणना कैसे करें? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Twitter - http://twitter.com/assetyogi Instagram - http://instagram.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Google Plus – https://plus.google.com/+assetyogi-ay Pinterest - http://pinterest.com/assetyogi/ Facebook – https://www.facebook.com/assetyogi Hope you liked this video in Hindi on “Commercial Property Valuation and Returns in India".
Views: 12386 Asset Yogi
Analyzing Commercial Real Estate Quickly and Easily
Discover how you can analyze any commercial real estate quickly and easily with 5 key terms.
How do you determine the value of commercial properties?
For more information on this subject, or for any commercial real estate related questions or information, you’re invited to call Michael Bull at 404-876-1640 x 101. Any question, anywhere, anytime.
Where can I find the value of commercial property?
Appreciate the video? The best thank you is to check out our sponsors. See if they might be of value to you, or your referrals. http://commercialrealestateshow.com/c... Don’t miss a show of special interest to you, subscribe to our weekly show topic email notification. You’ll know who’s on the show and what it’s about. http://bit.ly/2gfoKSN You’re invited to subscribe to the show’s YouTube channel. http://www.youtube.com/subscription_c... For more videos, podcasts, and articles, visit http://www.CREshow.com
Starting Small in Commercial Real Estate
http://www.commercialpropertyadvisors.com/starting-small-in-commercial-real-estate/ Discover how you can start small with commercial real estate and work your way up into bigger and bigger deals. If you have limited capital, are risk averse, have very little experience or are intimidated by the big numbers of commercial property, consider the steps in this video to starting small. You'll also discover that small commercial deals can be extremely profitable. In fact, there are far more small commercial properties than large ones so you have more options and opportunities. This is the perfect video for anyone who wants to get into commercial real estate investing but has been held back by fears and trepidation. Let Peter Harris guide you through the big, scary world of commercial real estate quickly and easily.
Leasing vs. Owning Your Commercial Property - Real Estate Investment Tips
Stay knowledgeable by subscribing! http://bit.ly/iLiveInTheBayArea Visit my site for even more information: http://www.iLiveInTheBayArea.com Like me on Facebook: http://www.fb.com/iLiveInTheBayArea If you own your own company, whether you are expanding your operations or simply staying where you are, one question has likely come up. Is it better to own our own space or lease it? With prices being the way they are, it might very well be the best time to buy your own real estate. However, owning MIGHT not be the best solution depending on what some of those intrinsic answer turn out to be. Why don't we look at a few well-known brands to see what their lease v own model is...Starbucks and Chevron. Starbucks...the little coffee shop from Seattle that started in 1971 and is now the largest coffee house in the world with over 17,000 stores in over 50 counties. Starbucks is a company that expanded SO FAST that in the 1990's until about mid 2000 they opened a new coffee house every single workday. If you're ever in downtown San Francisco or NY, it's not that hard to find two Starbucks locations on opposite street corners Now let's look at the Starbucks mode. Nearly all of their locations are in retail shopping centers or high density office markets in downtown locations. If Starbucks bought their location, they'd have to buy the entire retail center or the entire office complex and manage them for investment...something that's not in their business model. Instead, they lease all their locations. Also, we have to know what Starbucks expects their Net Present Value to be as explained in my "Determining Net Present Value" video. At one point I recall reading that for every $1 Starbucks received from an investor through stock, they could turn and make over .25-50 cents with that same $1 in a single year. A company that's rapidly growing like Starbucks would always set their NPV over 25 to 50%. The reason they could set it at such a high number was because they knew they could create SUCH a profit from a single dollar! Most income property can make anywhere from 5-20% depending on location and risk...so realistically, what kind of property doubles in value every year? If Starbucks is making 25-50 cents in profit for every dollar received, they would have to find a property worth buying that could make just as much. Considering how highly implausible that is, why would they waste their time when they could just lease out a space and keep expanding and making money? Now let's take a look at Chevron - a large company that is still growing, but at a much slower pace than Starbucks due to their smaller profit margin...Without knowing the exact numbers, let's presume for every $1 they receive from an investor they create 5-10 cents profit. A company like Chevron may not be able to demand such a large NPV like Starbucks, but they can definitely demand a 5-10% NPV rate because that is the profit they expect to make. Chevron of course wants to grow and expand, but nowhere NEAR the pace as Starbucks...they simply can't!! They're already grown! So with their NPV at 5-10%, even if the property they purchase doesn't appreciate in value very much or make them a good return, it may still be worth it for the STABILITY. Can you imagine if Chevron rented some of their huge refineries and all of a sudden the landlord raised rents on them because the market has gone up?? What do you think would happen to their bottom line? Would they be able to REALLY relocate their huge refinery? What do you think would happen to the consumer at the gas pump? What leverage would they have as a company vs. Starbucks who could simply pack up and move across the street if they don't like the lease rates? Remember, the rule that buying is better than leasing doesn't always apply in business. First and foremost, you have to decide whether or not you want the stability and commitment of a large purchase, or the flexibility of leaving once your lease is done. There's also financial issues in regards to if you have the capabilities for such a large transaction. These are just some of the questions that have to be addressed when considering leasing or owning. Usually, if your business is rapidly expanding, leasing is the common case. Whereas if you're looking for stability and modest growth, a purchase may be a better option. If you're wondering if expanding is right for you or what kind of data you can get for when the time comes, be sure to watch my "Site Selection" video. Determine the negatives and positives of both scenarios and determine at which point you would feel comfortable with either buying or leasing. This way you can use your capital wisely to help your business flourish the way you see fit...now that's good to know.
Commercial Real Estate Investing | The 4 Types of Commercial Spaces!
Investing in commercial real estate can be an incredibly lucrative wealth-building tool, but it isn't necessarily as easy as single-family rentals or multi-family and certainly has a lot more questions involved. In this video, Jesse Fragale, commercial real estate broker & Canadian Investor, will share the 4 commercial real estate spaces to help you better understand which one you might be interested in investing yourself! These four types of commercial real estate spaces involve multi-family, retail, industrial, & office! Each unique in its own and each offering pro's & cons. Jesse shares these and touches on them to help you better understand commercial real estate investing to help you get started on your journey. Join us & our favorite Canadian contributor in this video! Have a question? Simply ask in the comments :) ----------------------------------------------------------------------------------------------------------- Join our community! - https://www.biggerpockets.com Insta: @jfragalz & @brokerbanter https://www.instagram.com/jfragalz/ https://www.instagram.com/brokerbanter/ Linkedin: https://www.linkedin.com/in/jessefragale/ Jesse's Personal Youtube Channel: https://www.youtube.com/user/JesseFragale _________________________________________________________________ ► Music Credit: DJ Quads Track Names: "Summer Time" "The Society" "Just Roll With It" "Little Dream" Music by: Dj Quads @ https://soundcloud.com/aka-dj-quads Official YouTube Channel HERE: https://www.youtube.com/channel/UCusFqutyfTWRqGhC8kHA5uw SoundCloud HERE: https://soundcloud.com/aka-dj-quads Twitter HERE: https://twitter.com/DjQuads Spotify HERE: https://open.spotify.com/artist/2VZrdImbvB03VWApYtBRr3 Instagram HERE: https://www.instagram.com/djquads
Views: 12415 BiggerPockets
Commercial Property Investment in India - A Beginners Guide
How to invest in commercial property in India? Let's understand about the types of commercial property investments in India, Pros and Cons and what makes a commercial real estate a great investment? Also, we will see how to buy a commercial property in India. Related Videos: Commercial Property Valuation: https://youtu.be/qQ5uEbLycLs How to invest in Shop and Office: https://youtu.be/Hvf7kSwgpDE इंडिया में किसी कमर्शियल या वाणिज्यिक प्रॉपर्टी में कैसे निवेश करें? चलिए समझे हैं इंडिया में कमर्शियल प्रॉपर्टी इन्वेस्टमेंट के प्रकारों के बारे में, फायदे और नुकसान, और ऐसा क्या है जो कमर्शियल रियल एस्टेट को एक बहुत अच्छा इन्वेस्टमेंट बनता है? साथ ही हम ये भी देखेंगे की कैसे इंडिया में एक कमर्शियल प्रॉपर्टी खरीदी जा सकती है। Share this Video: https://youtu.be/QGfQMqPc9kE Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: How to invest in the commercial real estate in India? How to buy commercial property in India? What are the types of commercial real estate investment? What are the available investment options available in the commercial real estate in India? What are the advantages of investing in commercial property in India? What are the disadvantages of investing in commercial property in India? What are the risks of investing in commercial property? How much returns to expect from commercial property investment? What are some tips for investing in commercial real estate property? How to make sure you get returns from your commercial property investment? How to invest in retail property? How to invest in office property? इंडिया में कमर्शियल रियल एस्टेट प्रॉपर्टी में निवेश कैसे करें? इंडिया में कमर्शियल प्रॉपर्टी कैसे खरीदें? कमेर्टिकल रियल एस्टेट इन्वेस्टमेंट की कितने प्रकार होते हैं? इंडिया में कमर्शियल रियल एस्टेट प्रॉपर्टी में निवेश के उपलब्ध विकल्प क्या हैं? इंडिया में कमर्शियल प्रॉपर्टी में निवेश करने के क्या फायदे हैं? इंडिया में कमर्शियल प्रॉपर्टी में निवेश का क्या नुकसान है? कमर्शियल प्रॉपर्टी में निवेश करने के जोखिम क्या हैं? कमर्शियल प्रॉपर्टी निवेश से कितना रिटर्न की उम्मीद होती है? कमर्शियल रियल एस्टेट प्रॉपर्टी में निवेश करने के लिए कुछ अच्छे सुझाव क्या हैं? यह कैसे सुनिश्चित करे कि आप अपने कमर्शियल प्रॉपर्टी के निवेश से लाभ प्राप्त करें? रिटेल प्रॉपर्टी में कैसे निवेश करें? ऑफिस प्रॉपर्टी में कैसे निवेश करें? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Twitter - http://twitter.com/assetyogi Instagram - http://instagram.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Pinterest - http://pinterest.com/assetyogi/ Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Hope you liked this video in Hindi on “Commercial Property Investment in India".
Views: 27715 Asset Yogi
Real Estate: Zoning (Valuing Retail Property)
In this video I describe the steps taken by valuers to value retail property i.e. looking at the steps involved in zoning. For more videos see www.komillachadha.com
Views: 690 Komilla Chadha
Commercial vs Residential Property | Advantages Of Commercial Property Investment UK
If you are serious about investment in UK commercial property then you will need to decide where you stand on the great commercial vs residential property investment debate. This video explores the advantages of commercial property investment in the UK. In this video Susannah Cole (a residential property investor) and Am Kainth (a commercial property investor) compare and contrast the advantages, disadvantages and opportunities presented by residential and commercial property, in this residential vs commercial property investment debate. This is a must watch for anyone interested in diversifying into commercial property This talk was recorded at the BAKER STREET PROPERTY MEET -------------------------------------------------------------------------------------------------------------------------- The Baker Street Property Meet is the UK's number one property investors networking meet where 200+ property investors meet each month. We meet in central London on the last Wednesday of each month. For details on our next meeting and to book visit: http://www.BakerStreetPropertyMeet.com FOLLOW BAKER STREET PROPERTY MEET: ----------------------------------------------------------------------------------------------------------------------------------------------------------- Facebook - https://www.facebook.com/yourproperty... Instagram - https://www.instagram.com/ranjanbhatt... #susannahcole #amkainth #commercialpropertyadvantages #commercialvsresidentialproperty #commercialpropertyuk
Commercial Real Estate - NOI, Cap Rate, & Price
A quick description of Net Operating Income, Capitalization Rate, and Price - What they are, how they interact with each other, how to use them, etc. If I have made any mistakes, or omitted what seems like important relevant info then please message me or leave a comment! http://relevantproperties.com
Views: 158020 InvestRelevant
3 Top Tips to Add Value to Your Commercial Property | FVG Property
Find 3 smart startegies that can increase your commercial property’s value. The commercial/ real property valuers in Melbourne have brought these not groundbreaking ideas but effective rules to create an impressive property. Just follow the link and enjoy huge benefits on your property. To know more about our Commercial Property Valuation in Melbourne, visit https://www.fvg.com.au/commercial-property-valuation/
Views: 10 Mark Ruttner
Appraisal Best Practices in Commercial Real Estate
Ron Neyhart, Director of Valuation and Advisory Services at CBRE, joins Michael Bull in Studio One to discuss the current landscape and best practice related to appraisals.
Value Add Properties - Real Estate Investment Tips
Stay knowledgeable by subscribing! http://bit.ly/iLiveInTheBayArea Visit my site for even more information: http://www.iLiveInTheBayArea.com Like me on Facebook: http://www.fb.com/iLiveInTheBayArea There's a small niche market for a certain types of investors. The types of properties in this niche market are called Value Add properties, and these investors usually have three things. A great deal of cash...a sophisticated team including their real estate broker and contractors, and the stomach to take some big and risky leaps. Chances are you've seen these properties just in your daily commute. The empty office buildings, the rundown apartments and the retail center that USED to be nice but now it's just so worn out. These are the type of properties that for the right price and the right investor can make huge amounts of income over time...if you have the right stomach for it! First, let me touch a bit on how valuating commercial property works. Here we have a $1M office building. Let's say it has 20 different spaces that it could rent out, and only 2 of them are rented. Together, each unit pays $1000/month. If you remember from my "Commercial Loan Process" video, a commercial loan has to pay for itself and THEN some. With the building listed for $1M, there is no WAY you could get a loan that's under $2000/month! Just in taxes and insurance alone would cost you more!! But wait...if the whole point of commercial investment real estate is to make a profit on the rents...why would I buy something that's going to make me a NEGATIVE cash flow every month? And this is exactly where the value add comes in! The first catch is that you have to buy this property with cash or with a hard money lender as I discussed in my "Hard Money Loan" video. You may be buying this property for $1M, but the good thing is that it would cost you MORE than that to even BUILD it from scratch...so you're already one step in the right direction. Not only that, but at this price, you could just undercut all the other office landlords and rent your remaining 18 units for $750/month. With that, you can fill it up in NO time!! Now instead of just $2000/month, you're making over $15,500! This easily translates to a high positive cash flow! Once the property is stabilized with these tenants for a while, you have a few options. First you can improve the building and charge the tenants more money once their leases are through. This adds value to your property - making it more desirable - and makes tenants more acceptable to paying higher rents since they'd be in an upgraded building. Secondly if you choose, you could refinance the property. This will free up some funds that you initially invested so you could reinvest elsewhere. Finally you could "flip" the property for a profit! Without getting into detailed numbers, if you do your research and find that OTHER similar office buildings which make about the same monthly income of $15,500/month are selling for $2M, then your property is likely in that same range. For those of you that are a bit more comfortable with homes, let me compare it to a residential value add. We all probably know it as "flipping houses". There's a $250k house that's completely gutted...no one wants to buy it all cash when they can buy the neighbor's house for $500k. Someone comes along and figures that they could do the repairs themselves...and after a few months and about $100k, the home is worth $500k just like the neighbors. You add the $250k home price plus another $100k in rehab, that's a $150k profit. There is a final catch to all this as well. There's always a potential for something to go wrong. For instance, let's say that you're unable to rent out the units for $750/month, and instead you have to rent them out for $500/month...what is that going to do to your projections? This is why you have to be able to weigh your risk vs. what you determine will happen in the future with as much analysis as possible. These niche value add properties aren't usually easy to find. And like I mentioned before, they come with a HUGE risks. This means that even though there MIGHT be a HUGE payoff after the project is completed there's also a chance you only break even or even lose money. Most people are completely comfortable making a safe 6-12% return, vs. risking it to make 15-20%. This is why having a sophisticated team working for you is essential. You need to have everything lined up before you even attempt to buy a value add type of property. Weigh all your risks, do all the research and analysis you can, and if you're confident -- and have the stomach to make some huge profits -- then go for it...now that's good to know.
How To Project Sale Value In Commercial Real Estate
When underwriting a property, commercial real estate investors project a sale (reversion) value at the end of their projected hold period. These are the most common ways we do it.
Views: 85 Break Into CRE
Commercial Property , how to add value
how to improve the value of your commercial property investment
Views: 283 Glen Winney
Tips for Selling Your Commercial Property
With the market performing strong and prices high, now may be a good time to sell your commercial property. Join Michael Bull for tips and strategies, from getting an appraisal to picking the best agent to sell your property. For more information contact Michael Bull, CCIM 404-876-1640 x 101 or visit http://www.BullRealty.com Looking for tips as an agent? Visit http://www.CommercialAgentSuccess.com Appreciate the video? The best thank you is to check out our sponsors. See if they might be of value to you, or your referrals. http://commercialrealestateshow.com/c... Don’t miss a show of special interest to you, subscribe to our weekly show topic email notification. You’ll know who’s on the show and what it’s about. http://bit.ly/2gfoKSN You’re invited to subscribe to the show’s YouTube channel. http://www.youtube.com/subscription_c... For more videos, podcasts, and articles, visit http://www.CREshow.com
How to Use The Income Approach to Value Income-Producing Property
This video is a companion to our A.CRE 101: The Income Approach tutorial over at AdventuresinCRE.com. To check out the entire post and download the Excel file: Read the entire tutorial and download the model: https://www.adventuresincre.com/acre-101-income-approach-value-income-producing-property Learn about the author: http://www.SpencerBurton.org
Views: 6983 Spencer Burton
Commercial Real Estate Loan Refinancing: What It Means and Why Investors Do It
In this lesson, you’ll learn what it means to “refinance” commercial real estate loans in development and acquisition deals, why Equity Investors do it, and how it can boost their returns in deals. https://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:24 The Short Explanation for Refinancing 4:27 Examples with the Property’s Value Increasing 12:47 Different Types of Lenders and the Downsides of Refinancing 15:32 Recap and Summary Resources: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Real-Estate/Commercial-Real-Estate-Loan-Refinancing-Example.xlsx https://youtube-breakingintowallstreet-com.s3.amazonaws.com/Real-Estate/Commercial-Real-Estate-Loan-Refinancing-Slides.pdf Lesson Outline: A pair of questions that came in the other day: “Can you explain, in layman’s terms, why you often assume that Debt gets refinanced in real estate deals?” “Also, why is the amount of new Debt raised often different from the amount of existing Debt repaid?” SHORT ANSWER: Equity Investors complete refinancings to boost their returns in real estate deals – and because it’s in everyone’s best interest to do so. “Refinancing” means repaying existing Debt – almost all real estate deals involve Debt – by raising new Debt (think of it as “replacing” existing Debt). Refinancing boosts returns for the Equity Investors by reducing the interest expense and letting them earn back some of their initial investment before the exit (sale of the property). There are three main, specific reasons to refinance: Reason #1: Interest rates have fallen, or the property’s credit profile has changed, and the Equity Investors can get lower rates. For example, maybe interest rates have fallen from 5% to 4% – that may seem like a small difference, but since property deals often use 50-70% leverage, lower interest rates could result in a significant increase in cash flow. Reason #2: The property’s value has increased, so by refinancing at the same “Loan to Value” (LTV) Ratio, the sponsor can earn back some of its initial investment early – before the exit. For example, if an investor pays $10 million for a property that generates $600K in Net Operating Income (NOI) in Year 1 (6% Cap Rate) and uses a 70% LTV, that’s $7 million of Debt. By Year 3, the property’s NOI has increased to $650K, and market conditions have stayed about the same, so assuming the same 6% Cap Rate, the property is now worth $650K / 6% = $10.8 million. The New Debt would be worth $10.8 million * 70% = $7.6 million at a 70% LTV now, so the extra $600K in proceeds go to the Equity Investors early. We demonstrate a more complex example of this with a $54 million AUD hotel in Darwin, Australia, acquired at an 8.80% Cap Rate using an 85% LTV. After four years, the forward NOI has increased from $4.7 million to $6.3 million, so it is worth $70.5 million at a 9.00% Cap Rate. We refinance at a 75% LTV, slightly lower, and use a $52.9 million Permanent Loan to repay the $44.4 million of remaining acquisition debt and mezzanine at this point. That $8.5 million “extra” goes to the Equity Investors (it’s a bit less due to the financing fees). Without the refinancing, the 5-year IRR would be 17.9%; with the refinancing, it would be 19.1%. This is a small difference because Cap Rates rise slightly and the LTV drops – but if Cap Rates fall or the LTV stays the same or increases, refinancing could add far more than 1% to the IRR. Reason #3: The terms of the Debt require a refinancing. Different lenders target different risk and potential returns, and Construction and Bridge Loan investors don’t want to stay on board once a property is built or stabilized. So, these lenders often require property owners to refinance under certain conditions or when there’s a “change of control” (someone else buys the property). Downsides to Refinancing The Equity Investors might not refinance if the property’s value has fallen or if interest rates have risen. Refinancing does present some risk because it could increase the default risk, especially if the Interest Coverage Ratio or Debt Service Coverage Ratio fall. Finally, it can sometimes be tricky to estimate the correct property value and use it in these formulas, especially if the property has not yet stabilized and will take time to do so.
Value-Added Real Estate Private Equity Case Study
In this Value-Added Real Estate Private Equity Case Study tutorial video, you'll learn what to expect in real estate private equity case studies and you'll get an example of a real value-added RE PE case study with the solution file and a walk-through of the key points. Please get all the files and the textual description and explanation here: http://www.mergersandinquisitions.com/value-added-real-estate-private-equity-case-study/ Table of Contents: 2:41 Part 1: The Types of RE PE Case Studies 5:19 Part 2: This Case Study and What Makes It Tricky 12:40 Part 3: Why Excel is Horrible for This Case Study 16:59 The Scenarios in This Model 17:51 Part 4: The Property Model and Returns Analysis 26:39 Part 5: The Investment Recommendation 28:37 Recap and Summary Part 1: The Types of RE PE Case Studies The 3 main types are core / core-plus, value-added, and opportunistic. In the first category, the property stays nearly the same over the holding period and the market analysis is more important than a complex model. In the second category, the property changes significantly (more tenants, higher rents, a renovation, etc.) and the models tend to be more complex. The modeling often gets the most complex in the third category because a new property is developed, an existing one is redeveloped, or the building changes massively (e.g., rescuing a distressed property). The complexity also depends on how granular the model is - modeling individual tenants with different lease terms always gets more complicated than a high-level model with average unit sizes, square feet or square meters, etc. Part 2: This Case Study and What Makes It Tricky This case study is less about analyzing the market data, and more about getting all the Excel formulas correct, making the correct calculations, and finishing on time. Since we have information on 13 individual tenants in the building, we NEED to do a more granular analysis and look at each tenant separately. The Excel formulas for free months of rent, TIs and LCs, and other key terms in the leases are somewhat tricky to figure out. Part 3: Why Excel is Horrible for This Case Study The problem here is that there are two scenarios for each existing tenant: they might renew, or they might not renew, when their lease expires. If it's just these two scenarios you can do a reasonable job plotting them out in Excel. But when it goes beyond that - say, 2-year contracts over a 10-year period, resulting in 5 "renewal points" and 2^5 or 32 scenarios - Excel becomes unwieldy for this exercise. You're better off using ARGUS to model this if you have that level of complexity and an entire probability tree. As it stands, our formulas get quite complex here though they are not THAT difficult to understand if you break down the individual components. The Scenarios in This Model The main difference between the three scenarios here is that the occupancy rate stays the same, at 74%, in the Downside Case, whereas it increases to 80% in the Base Case because we find three new tenants, and it increases to 85% in the Upside Case as we find four new tenants. Also, the growth assumptions and the TIs, LCs, and other concessions such as free months of rent differ between the three cases and are most generous in the Upside Case and least generous in the Downside Case. Part 4: The Property Model and Returns Analysis In short, after setting up all the formulas for rent, free months of rent, absorption (the difference between market rent and in-place rent), turnover vacancy (the time between one tenant cancelling and moving out and finding a new one to replace him), and general vacancy, we fill out the rest of the Pro-Forma Model. We include all the operating expenses to determine the property's NOI, and then plot out the debt repayments over time and the interest expense paid on debt. The Acquisition/Exit assumptions and Sources & Uses schedule are all quite straightforward: we assume lower Exit Cap Rates due to the renovation, but there's less of a decline in the Downside Case. In the Returns Analysis, we set up a "waterfall schedule" to split and distribute the returns: up to a 10% IRR is split 80/20 between the LPs and GPs, then between a 10% and 15% IRR it's split 70/30, and then above 15% it's split 60/40. Part 5: The Investment Recommendation We recommend acquiring the property because the numbers work well and meet our targeted IRR and CoC multiple in the Base and Downside cases, the market data is positive, and we believe it's plausible for the occupancy rate and average rents to increase up to the market levels in the area. For the deal NOT to work, something catastrophic would have to happen: rents falling by 25%, the lease renewal rate dropping to 30%, or something in that vein... and we believe there are ways to mitigate against all those risks. http://www.mergersandinquisitions.com/value-added-real-estate-private-equity-case-study/
How We Added $2 Million Dollars in Value to $2.1 Million Dollar Commercial Property
I love this building! We bought a 68k square foot commercial property in February of 2018. This was the biggest building I had ever bought by about 62k square feet! It seemed like an amazing deal on paper, but I did not know for sure how everything would work out or if we were missing something. You can see the video of the property after I first bought it here: https://www.youtube.com/watch?v=oUmjpETmRfk It had two vacant units when we bought that we thought we could get rented. I knew I could get one rented since I would start a real estate brokerage there. The property was also priced very low and I constantly wondered what was I missing? I go over in the video how it was priced at a 9 CAP when the market supports a 7 or even 6 CAP. We ended up renting all the spaces and adding a lot of income as well as value to the property because of that income and getting a great deal. Here is a video of the Dance studio https://www.youtube.com/watch?v=hFp91ewMnZ4&t=237s Here is a video of my office https://www.youtube.com/watch?v=GrqnuMO5CZM Here is a link to my book Build a Rental Property Empire: https://amzn.to/2N3b6pF
How to Make an Offer on Commercial Real Estate
http://www.commercialpropertyadvisors.com/how-to-make-offers-on-commercial-real-estate/ Discover what no classroom would ever teach you on how to make an offer on commercial real estate. You'll learn the absolute essential things you need to make an intelligent offer, including the 4 phases you must go through BEFORE you finalize your offer. Most importantly, the lessons in this video will educate you on how to avoid overpaying as well as the dreaded negative cash-flow scenario that some commercial investors experience when they first purchase. Lastly, you'll get access to a file that step by step, shows you exactly how to make the best offer on any commercial property.
Real Estate Acquisition Model for Office, Retail, or Industrial Properties
A basic real estate valuation model for office, retail, or industrial deals built in Microsoft Excel. The model includes a simple DCF module to calculate cash flows over the hold period, as well as an equity waterfall module for calculating partnership returns. You can download the model for free here: http://www.adventuresincre.com/real-estate-acquisition-model-for-office-retail-or-industrial-properties If you have any questions or comments, feel free to contact the author, Spencer Burton, at http://www.spencerburton.org
Views: 48121 Spencer Burton
Determining Property Value the Right Way
http://www.freedommentor.com/determining-property-value/ - Discover the right way to determining property value.
Views: 511119 Phil Pustejovsky
Commercial Real Estate Investing for Dummies
http://www.commercialpropertyadvisors.com/dummies Commercial real estate investing for dummies by the author of the book Commercial Real Estate Investing for Dummies
What Is Cap Rate and How Does It Affect the Value of My Commercial Real Estate Investment?
https://www.msrholdings.com/ If you’re an investor interested in commercial real estate, then Capitalization Rate – or “Cap Rate” as it’s usually known – is one of the most integral concepts to understand. Understanding the Cap Rate equation, and how it can work to provide you with the best return on investment, will help you make smart investment choices. The Cap Rate equation has three components: - Cap Rate: Used to estimate an investor’s potential value on a real estate investment. - Net Operating Income: Annual income the property generates. This involves rent from tenants, less any operating expenses such as maintenance and taxes. - Value or Purchase Price: How much the property is worth in current market conditions. NOI, Value, and Cap Rate control how much return on your investment you will get. Watch this video, where we explain the Cap Rate equation in detail and give examples of how the different elements can affect long-term ROI.
Views: 3435 DMCC Holdings Inc.
Right Property Value in Indian Real Estate?
How to find right property value in India? This property valuation method can be used to detect whether a property is overvalued or under-priced, whether it is cheaper to buy a property or to rent a property in India at any given point in time. Use this rental yield or rental returns method to detect real estate bubble, when you plan to buy a residential property or commercial property in India. Related Videos: Rent or Buy a House? - https://youtu.be/x2lZbfTJ6t8 Share this Video: https://youtu.be/s07DmmtNphg इंडिया में सही वैल्यू की प्रॉपर्टी कैसे ढूंढें? इस प्रॉपर्टी वैल्यूएशन मेथड का इस्तेमाल ये पता लगाने के लिए किया जा सकता है कि किसी संपत्ति को ओवरवैल्यूड या अंडर-प्रिज़्ड रखा गया है, चाहे फि किसी प्रॉपर्टी को खरीदना सस्ता हो या कभी इंडिया में कोई प्रॉपर्टी किराए पर लेना हो। जब भी आप रेजिडेंशियल प्रॉपर्टी या कमर्शियल प्रॉपर्टी खरीदने के बारे में सोचते हैं तो इस रेंटल यील्ड या रेंटल रिटर्न्स मेथड का इस्तेमाल करके आप रियल एस्टेट बबल के का पता लगा सकते हैं। Subscribe To Our Channel and Get More Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g To access more learning resources on finance, check out www.assetyogi.com In this video, we have explained: How to know the exact value of a property in India? How to detect real estate bubble in India? How to recognize if the property you are buying is overvalued or undervalued? How to use rental yield property valuation method to evaluate the value of a property in India? How to detect real estate bubble using rental returns method? How to use property valuation method to make property buying decision? Rental yields property valuation method can be used for evaluation of both commercial and residential property, if you are in a dilemma whether to buy a specific property in any specific location then you can use the rental returns of the properties located in that specific area to make sure you are getting the right property value for your investment. Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Google Plus – https://plus.google.com/+assetyogi-ay Twitter - http://twitter.com/assetyogi Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Instagram - http://instagram.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Hope you liked this video about “Right Property Value in Indian Real Estate”
Views: 39447 Asset Yogi
How to Evaluate a Value Add Property
Invest with Origin: http://bit.ly/2PSCx3k Learn the various ways value-added real estate investment properties can be evaluated. About Origin Investments: Investing in commercial real estate can seem complicated and overwhelming. But for individuals willing to take the time and effort to learn how to navigate this market, it can be incredibly rewarding. At Origin, we’re dedicated to educating individuals so they can make smarter real estate investing decisions. Our blog has become a valuable industry resource with hundreds of articles to choose from and our newsletter delivers real estate investing education to inboxes twice a month. Origin Investments is also transforming the way individuals invest in real estate. We’re a Chicago-based real estate investment firm who acquires and operates value-added office and multi-family properties in eight fast-growing markets in the U.S. We invest side-by-side with investors, adhere to a disciplined investment philosophy and use technology to make it easy to manage investments. Origin’s investment platform is available to accredited investors who share their values and want to invest alongside an experienced manager with more than $700 million in assets under management. Our first two funds are averaging a 24% Net return to investors and have achieved top quartile performance, per Preqin data, and we recently raised $151 million for Origin Fund III.
Views: 629 Origin Investments
The Real Value of Space in Commercial Real Estate
This video explains how by releasing space from within the walls, you could be unlocking investment potential in terms of rental income. The usable space within a building is a fundamental metric in understanding the valuation, thus the investment potential, of real estate. Property with greater internal floor area commands a higher rental return in addition to a higher overall financial value. Insulation can add width to external walls, which takes up internal floor space. Space that could be used to generate additional rental income. Space that can be valuable in commercial real estate. So imagine if you could reduce the width of the walls of your building, without compromising the overall designed footprint, to release space and unlock the full investment potential for you or your client… Kingspan Kooltherm wall insulation solutions deliver superior thermal performance with a thinner profile. Kingspan Insulation asked Sweett Group to look into the Return on Investment (ROI) from specifying Kingspan Kooltherm wall insulation solutions versus comparative insulation solutions.
All you need to know about investing in commercial property
No time to listen to this podcast now? Why not subscribe here and listen on your favourite app – https://MichaelYardneyPodcast.com Have you thought about investing in commercial property?  You’re not alone — faced with the prospect of more moderate returns from their residential property investments, many investors are considering this as an alternative.  By this, I mean offices, shops or warehouses.  In today’s podcast, I’ll be exploring the benefits of investing in commercial property, as well as some of the negatives.  Benefits of commercial property  There are of course many benefits from investing in commercial property  Strong returns — Over the years commercial property has provided strong returns as a combination of capital gain and income. Stability of income — One of the important features of commercial property is returns are generally high and more secure. Returns for property fluctuate considerably less than returns on shares. Low risk — There is less volatility in the value of commercial property than in shares — if you own the right property. Exposure to different sectors of the economy — Retail and industrial properties have a direct relationship to the general state of the economy.  Retail property depends upon consumer spending. Tax benefits — Commercial properties provide generous tax benefits with substantial depreciation allowances. Some buildings also attract building allowances, where a portion of the structural cost can be offset against the assessable income. Hedge against inflation — The value of commercial property and rentals of commercial properties have outpaced inflation over the long period. Investment control — As the owner of commercial property, you have a significant degree of control over your investment.  You can choose to do improve your return through renovations, upgrading, and change of the use of the property, or you may amend the terms of the lease or the type of tenant you have and you always have the option of further development of the property or dispose of it. Leverage — Just as with residential properties it is possible to leverage your returns by borrowing up to 70% of the value of commercial property. Adding value — Just as investors in residential property are able to add value by buying a run-down property and renovating or redeveloping it, there are opportunities in commercial property to add value.  In particular, if you can increase the rental income from your property this will directly reflect on the valuation of the property. The negatives of commercial property  Some of the disadvantages of investing in commercial properties include:  Lack of liquidity — Selling a commercial property can take several months — often longer than it takes to sell a well-located residential property. Lack of pricing information — Compared to residential property there is little pricing information available for investors in commercial property.  It is, therefore, more difficult to know the value of your particular property. Scarcity of other information — If you are interested in share or in residential property, there are many blogs, magazines, newspapers, and websites that will help keep you informed and make you a better-educated investor.  There are very few information resources for people interested in commercial real estate. You will find some articles in the Australian Financial Review and in the reports produced by some of the larger commercial property agencies. Higher costs — The entry level to purchase a commercial property is usually higher than that for residential. Partly because the price of a good commercial investment is substantial and partly because you require a larger deposit as banks won't lend you as high a proportion of your property compared to residential real estate Ongoing management — Direct property investment in commercial properties can require your ongoing management but usually requires less management than similarly priced residential properties.
Views: 273 Michael Yardney
Impact of Rising Interest Rates on Commercial Property Values
Todd Kuhlmann joins Michael at the National Association of REALTORS Annual Conference in San Diego to discuss the impact of interest rates on commercial real estate. #NARannual #CRE #NAR
How Commercial Real Estate is Valued
I just created a video for you where I walk you through how to value commercial real estate so you can properly evaluate potential value-add opportunities. For single-family, the value is determined by the market, so your best bet for establishing how much a property is worth involves looking at residential sales comparables in the area. But one of the benefits of multifamily is the fact that you can influence a building’s value by increasing the amount of money it generates. What other factors (beyond income) go into assessing the value of commercial real estate? How do you do the math for any given multifamily property? Today, I am sharing the formula used to calculate the value of a multifamily property. I discuss key terms like capitalization rate, explaining what the metric represents and how it varies by asset type, asset class and geography. I also provide an example of how improving the income of a property impacts its value. http://www.themichaelblank.com/apartments/how-commercial-real-estate-is-valued/
Gas Stations And Going-Concern Value in Commercial Real Estate Appraisal
http://www.commercial-appraisers.com Christopher A. Rolly, MAI with Commercial Investment Appraisers in Orlando discusses how going gas stations can be appraised for their going-concern value. To speak with a commercial appraiser in Central Florida, call 407-929-8080.
Views: 1134 CommercialAppraisers
How to Buy Distressed Commercial Property
Distressed Commercial Property can make you a multi-millionaire on just one good deal. In this video, you'll discover the physical, financial and legal characteristics that make commercial real estate distressed and how you can buy distressed properties for profit. You'll learn how to locate them, finance them and design the right exit strategies.
How to determine the value commercial property?
How to determine the value commercial property? Quickly assess if the asset is worth your time. You only need a little bit of information to determine if you want to move forward. http://bit.ly/dieselpro Use promo code "DIESEL" for a 20% discount. DISCLAIMER: This video and description contains affiliate links, which means that if you click on one of the product links, I’ll receive a small commission. This helps support the channel and allows us to continue to make videos like this. Thank you for the support! This channel is for investors that want commercial real estate information and quality business insight. I'm a commercial real estate broker in Florida, and I've been investing for some time now. I started this channel in hopes of educating investors. I believe genuine information is hard to come by, or you'll end up paying ridiculous sums of money for it because you went to some event a guru was conducting. That's absolute BS, and I will try my very best to give you as much insight as I possibly can. I've committed to sharing as much intelligent advice as I can with new and experienced investors. My goal is to empower you with the knowledge needed to make sound investment decisions Download your Commercial Blueprint. http://bit.ly/creblueprint ----CONNECT WITH TIM DIESEL---- Tim Diesel Official Website – www.timdiesel.com Diesel Commercial Group - www.dieselcommercialgroup.com Linkedin - https://www.linkedin.com/in/timjdiesel Instagram - https://www.instagram.com/timjdiesel Twitter - https://twitter.com/timjdiesel Check out my Podcast http://bit.ly/tdieselpodcast #timdiesel,#commercialrealestate,#investor,#caprate
Shopping Center Investing for Beginners
Shopping Center Investing tips for Beginners from Peter Harris of Commercial Property Advisors
Find the Value Add - Real Estate Investing with Grant Cardone
In this edition of Grant Cardone’s Real Estate Show the topic is on multi-family value-add. When you are buying apartments, how can you add value to get more income? Tips to find the value-add in the deal include the following: 1.Rent Disparity— look for markets where there is a big difference in prices, where there are $800 rents in the ghetto and then jump to $3000 in other areas. Where’s the middle? Look for markets where there is big rent disparity. 2.Timing—there are certain times better than other times, and to know the timing you have to be in the marketplace. 3.Kitchens and floors— You don’t get a pool to raise the rent, but to make it easier to rent. Amenities make it easier to close the deal with people. Washers and dryers will cost money to install but will make it easier to rent for many people. Would you spend $600 to get back $65 a month? Invest something to get something back. Think about things people will pay for like parking or VIP trash pick-up. This is an incoming producing business so get creative. Don’t do baby steps in real estate. If you do, you’ll be punished. Save your money until you can go big. You need to be buying things that will produce income right away. For more, tune in each Monday as Grant tackles your questions on anything and everything to do with real estate. GrantCardone.com http://www.grantcardone.com #business #realestate #investing #GrantCardone #10XRule #SalesTraining #SalesMotivation Our offerings under Rule 506(c) are for accredited investors only. FOR OUR CURRENT REGULATION A OFFERING, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(D)(2)(I)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV. For our anticipated Regulation A offering, until such time that the Offering Statement is qualified by the SEC, no money or consideration is being solicited, and if sent in response prior to qualification, such money will not be accepted. No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is qualified. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. A person's indication of interest involves no obligation or commitment of any kind. Our Offering Circular, which is part of the Offering Statement, may be found at https://cardonecapital.com/offering-1
Views: 60292 Grant Cardone
Tampa Commercial Property Evaluation - How to Value Commercial Properties in Tampa Bay RE/MAX
http://www.SOLDorWeBuyit.com Andrew Duncan talks with Tim Watson from RE/MAX Commercial Division in Tampa bay about how to evaluate and price a commercial property. They discuss differences in pricing a home and the comps between commercial and residential. You can search for commercial properties in Tampa Bay at http://www.SearchTampaCommercial.com
Below Market Value Commercial Properties London
http://bmvsolidinvestments.com/ Below Market Value Commercial Properties London
Views: 192 quicksaleltd
How to Buy Your First Multi Family Small Apartment Building
https://www.commercialpropertyadvisors.com/buying-your-first-multi-family-small-apartment-building/ Discover how to buy your first multi family small apartment building, step by step. Don't get caught up in the "bigger is better" mentality. Instead, you'll find that the smaller deals can be the most profitable. This is a great video for anyone interested is getting started with Commercial Real Estate investing.
7 Tips to Increase Your Commercial Property Value - Tip 3 Renovate
St Petersburg Florida Commercial Real Estate Adviser, Tracee Jones. suncoastcommercialinvestments.com Suncoast Commercial Investments of Keller Williams Realty Suncoast 263 Corey Ave, St Pete Beach, FL 33706 suncoastcommercialinvestments.com https://www.youtube.com/channel/UCPK1ffqbhTrYYlRCoYyGj8Q St. Pete Beach Commercial Real Estate Broker. Hotel Broker. Suncoast Commercial Investments of Keller Williams Commercial specializes in hotel brokerage, multi-family sales, and real estate acquisitions and portfolio disposition for private equity and REITS. https://www.linkedin.com/in/tracee-jones-9847a85 https://www.facebook.com/profile.php?id=100010584675369 https://plus.google.com/u/0/+Suncoastcommercialinvestments
7 Tips to Increase Your Commercial Property Value  - Tip 5 Add Amenities
St. Petersburg Florida Commercial Real Estate Agency. suncoastcommercialinvestments.com Suncoast Commercial Investments of Keller Williams Commercial specializes in hotel brokerage, multi-family sales, and real estate acquisitions and portfolio disposition for private equity and REITS. https://www.linkedin.com/in/tracee-jones-9847a85 https://www.facebook.com/profile.php?id=100010584675369 https://plus.google.com/u/0/+Suncoastcommercialinvestments https://www.youtube.com/channel/UCPK1ffqbhTrYYlRCoYyGj8Q
Cobalt helps commercial property owners "sweeping up" value
A new spark360 Story Focuses on Former White-Collar Exec Hoping to "Clean Up" in Shopping Center Maintenance. To learn more about Cobalt Real Estate Services visit them at http://cobaltrealestateservices.com. To learn more about spark360 visit them at http://spark360.tv.
Views: 302 Spark360TV