Commercial Real Estate

In commercial  real estate, you have to run the numbers before buying a property. Indeed, you need to run the numbers  even when selling. It is critical to know if your currents rents are in line with the market. What is the upside potential for rent increases and subsequent increase in valuation? Will the projected net operating income debt-service at adequate DSCR ratios in order to obtain financing-a buyer consideration. What is the expense load, vacancy rate or market cap rates to determine projected valuation? Here is where we can help:

• Market and sub-market analysis.
• Pro forma projected income and valuation.
• Net lease tenant financial condition with analysis of balance sheet net worth, working capital, income statement and statement of cash flows (your tax expert must review because we are not tax consultants.) 
• Analysis of DSCR, cash flow, debt service, expense load, EGI, NOI, cap rate, IRR (if equity utilized), etc. 
• Highly competitive interest rates.

Let us find the right loan for your particular commercial property type. We can analyze the numbers and make recommendations that will improve your DSCR and cash flow. Call us for a free consultation and rate quote today.

 Do you know what Capitalization Rate or NOI (Net Operating Income) to consider in your valuation before making an offer? Are the seller's numbers Actual or Pro Forma? The difference in price could be significant-actual scenario:
 

Actual NOI = 959,000., Cap Rate 6%, Price: 15,983,333.
 

Pro Forma NOI = 1,200,000., Cap Rate 6%, Price: 20,000,000.
 

Which price would you offer? Do you know how much you need for down payment so that your loan dollars are not debt-service constrained? Or how to perform break-even analysis and analyze operating statements? What is the vacancy factor? Have you looked at trends in jobs and traffic flow in the area? Are competing developers pulling permits in the area? They may be building new projects in your area; what is your Exit Strategy? There may not be any barriers to entry.

What about financial, legal, and physical due diligence? How about Cash-on-Cash return? These are important questions. The right team can help you run the numbers and analyze the deal before you make an offer.
They can help you eliminate deals scenarios that don't debt-service or cash-flow well and help identify the real deals so you do not waste time and money.