|
| |
Commercial Real Estate Mentoring - 02/07/08 01:31 PM
Commercial Real Estate Mentoring
by Michael Setunsky
My pre-licensing real estate students always ask me, "How can I get started in real estate?" My immediate response is, "Go with a company that has a good mentoring program." Work with an experienced mentor who can help you quickly get started in the business without you having to reinvent the wheel.
A good mentoring program will give the Sales Associate a running start to get off on the right foot in handling commercial properties. Commercial real estate is essentially the same as residential real estate when it comes to prospecting, listing properties and writing contracts; … (7 comments)
|
GRM vs. CAP Rate - 02/06/08 01:03 PM
GRM vs. CAP Rate
by Michael Setunsky
Which method is more viable as a way to value a real estate investment, the Gross Rent Multiplier (GRM) or the Capitalization (CAP) Rate? Let's look at these two methods one at a time and then compare the two.
Gross Rent Multiplier
The GRM also called the Gross Income Multiplier is a very rough "Rule of Thumb" approach to valuing an investment. Webster's New Collegiate Dictionary defines a rule of thumb as a general principle regarded as roughly correct but not intended to be scientifically accurate. In other words the GRM is a ballpark estimation tool for … (5 comments)
|
Do I Need a Business Valuation - 02/04/08 10:51 AM
Do I Need a Business Valuation?
by Michael Setunsky
Do I need a valuation to sell or purchase a business opportunity? If you are selling a business, a valuation will give the Seller a very good idea as to what the value of the business may be on the open market. If you are purchasing a business, a valuation with give the Buyer an opinion as to where the Seller stands in a competitive market. Whether you are a Seller or a Buyer, a valuation will assist you in making an informed decision as to the basis for the sales price.
Let us first … (2 comments)
|
What is a Cap Rate - 02/04/08 09:56 AM
What is a CAP Rate?
by Michael Setunsky
The Wikipedia defines the Capitalization or CAP Rate in part as:
A contraction of capitalization rate, the cap rate is the assumed rate of return on an investment in real estate. The cap rate is commonly used in the valuation of commercial and investment property because it directly links the value to the income produced by the property.
To determine the cap rate of a property, divide the net operating income by the sales price. From an income standpoint, the higher the cap rate, the better the deal.
Note that a higher cap rate results in a … (2 comments)
|
|
|
|
Michael Setunsky, Michael's Commercial Northern Virginia Commercial Real Estate
Woodbridge,
VA
More about me…
703.831.4028, http://michaelscommercial.com
Office Phone: (703) 831-4028
Email Me
 Listings
Links
Archives
|
|
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2013 ActiveRain Corp. All Rights Reserved
Connect. Share. Learn.Welcome to ActiveRain, the #1 social community for real estate professionals.
;)
;)
;)