The first task in any real estate investment decision is to build a proforma, which is just a word that means cash flow projection. In this guide, we will define the term proforma, look at an example of a simple real estate proforma, review a more complicated real estate proforma, and also discuss some nuances you may see in the real world.
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Selling Multifamily Property: Guide with eXp Commercial
Learn the process of selling your multifamily property with eXp Commercial. Maximize value and createRead more
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Selling an Apartment Building FAQ’s
Are you thinking of selling your multi-family property? Here are some of the most frequentlyRead more
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If You’re Hesitant To Hire A Broker For Your Multifamily Property Read This
The most important benefit of exclusively listing your property with a broker is representation.
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Should I Sell or Should I Hold? When is the best time for asset repositioning?
It doesn’t really matter what the current real estate market is like if you areRead more
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Why Should I Sell My Multifamily Property?
There are a number of reasons why people decide to sell their multifamily property, butRead more
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The capitalization rate is a fundamental concept in the commercial real estate industry. Yet, it is often misunderstood and sometimes incorrectly used. This post will take a deep dive into the concept of the cap rate, and also clear up some common misconceptions.
The broker price opinion (BPO), also known as a broker opinion of value (BOV), is a popular way of estimating the value of a property. Typical reasons for ordering a broker price opinion include estimating value prior to purchase or sale, understanding collateral value when securing a new loan or refinancing, estimating liquidation value, buying out a partner’s interest in a property, among many others. In this article we’ll take a deep dive into the broker price opinion, review the three approaches to market value, and also clear up some common misconceptions about the broker price opinion.
Understanding Net Operating Income (NOI) is essential in commercial real estate. Without a firm grasp of net operating income, commonly referred to as just “NOI”, it’s impossible to fully understand investment real estate transactions. In this article, we’ll take a closer look at net operating income, discuss the components of NOI, and also clear up some common misconceptions.
Value is traditionally defined as the power of a good to command other goods or services when exchanged. Within this broad definition of value, there are various types of value given to real property, such as investment value, market value, insurable value, assessed value, liquidation value, or replacement value. In this article we’ll go over different types of real estate value, and then zero in and focus on the difference between investment value and market value, which is often confused by commercial real estate professionals.
In this article we are going to conduct an investment analysis on a 140 unit apartment building acquisition. We’ll walk through the process of forecasting cash flows and also explain the calculations needed to determine investment value. Read on as we take a deep dive into the world of apartment investing.