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getfunding
157 Posts |
 Posted - 09/09/2009 : 12:45:53 PM
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Have an Investor looking to buy a "Apartment building" 3-14 units.
Never done commercial, How do I approach this type of property from a
income producing standpoint,Calculation and evaluation since i know the
primary focus is on the property instead of the borrower??
Thx |
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crankyusi
848 Posts |
Posted - 09/10/2009 : 10:08:29 PM
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| Regarding evaluating the property, my general comment is to see if you can befriend an appraiser and read an old appraisal he\she did on a similar building. In the old days it was an MAI appraisal. Typically a well-written appraisal will address many issues that lead to their final conclusions..... Demand\competition in the surrounding market, property attributes, location, appropriate cap rate, etc. are usually discussed and eventually incorporated into an operating statement. For instance, although he seems to love chasing a wide variety of off-topics here on this forum, I do like the way Hopland on BO argues real estate issues. So, I'd say find an appraiser of that type so you can review their work. |
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