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How to Calculate DSCR and LTV - 11/26/11 08:43 PM
How to Calculate DSCR and LTV
So what does DSCR and LTV even mean? These are both important factors in getting approved for your next investment property loan. They stand for Debt Service Coverage Ratio (DSCR) and Loan to Value (LTV).
So how do you know how large of a mortgage your property will qualify for? Notice this is about what the property will qualify for, not you personally. For commercial properties, the property itself is often more important than the borrower when qualifying for a mortgage. The two primary tests that your lender will use to determine how large of … (0 comments)
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How to Calculate a "Cap Rate" or Capitalization Rate? - 11/26/11 08:09 PM
How to Calculate a "Cap Rate" or Capitalization Rate?
What is a Cap Rate and why is it important? A cap rate is a ratio used to estimate the value of income producing properties. Put simply, the cap rate is the net operating income divided by the sales price or value of a property expressed as a percentage. Investors, lenders and appraisers use the cap rate to estimate the purchase price for different types of income producing properties. A market cap rate is determined by evaluating the financial data of similar properties which have recently sold in a specific market. It … (1 comments)
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How to Calculate Net Operating Income (NOI) - 11/26/11 06:42 PM
Net Operating Income is the most important calculation you can do when evaluating an investment property. One of the first things that we ask the seller for is his financials or P&L's. Often when we ask for this, we get some numbers scratched on a piece of paper, or a bunch of bank statements. How do we make sense of this information?
We start by determining the determining the Effective Operating Income (EOI). So you take the rent roll that the owner of this small retail property has given you, and determine that the base rent is $10,000/month or $120,000/year. Next, we'll need to subtract any vacancy loss … (1 comments)
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Next Autoworks Pulls Plug On Car Manufacturing Facility in Monroe LA - 11/24/11 03:19 AM
Next Autoworks Pulls Plug On Car Manufacturing Facility in Monroe LA
After the United States Department of Energy refused a $320 million loan, Next Autoworks announced they will no longer be pursuing a car manufacturing facility in Monroe LA. Despite having raised $90 million in private investment and $83 million from state and local governmental agencies, Next Autoworks will not be able to raise the remaining capital required to kick start the project.
For more information, click here: http://tnsne.ws/vtjYXq
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7 Reasons to Call Your Commercial Real Estate Agent - 11/23/11 03:58 PM
Have you spoken with a Commercial Real Estate Professional lately about your business? Top commercial agents are constantly talking with other business owners in your area to stay on top of who's upsizing, downsizing, moving, wanting to move, looking for investment property, considering a sale, looking for a new location, and/or expanding their business. Its not uncommon that many of these businesses and locations may not be on the open market yet. Quality commercial agents talk to well over a hundred people each week to keep their finger on the pulse of local businesses, and having an ally like that can't … (0 comments)
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Keller Williams Commercial Has 47.36% Market Share - 11/23/11 01:43 PM
Keller Williams Commercial Has 47.36% Market Share
As of November 23, 2011 Keller Williams Commercial has sold $18,536,073 of commercial real estate which accounts for 47.36% of all commercial building transactions in Northeast Louisiana's 17-parish Association of Realtors.
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Sold: Apartments in Monroe LA - 11/22/11 07:23 PM
Sold: Apartments in Monroe LA
The Ferrand Place Apartments at 2307 Ferrand in Monroe LA sold for $825,000 on September 20, 2011. The seller was Benjamin Siglin Gorman and the buyer was We Rn Property, Inc. The property consists of 26 apartments within 3 buildings and a laundry facility. The average price per unit came to $31,731 per unit.
We have assisted many clients in purchasing and selling Apartments in Monroe LA. If you would like to discuss current investment opportunities, rental rates, or occupancy rates, contact Ryan Roark at 318-348-5815.
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Invest in Real Estate with your IRA - 11/22/11 06:57 PM
Have you considered investing in real estate with your retirement income? Most people aren't aware that this is even possible, but the law will allow you to purchase real estate within your retirement account and let the asset grow tax free until you need it. Several companies are specializing in this trend and they make it very easy to do.
Via Joseph Cacciapaglia (BMC Capital):
I recently wrote a post where I mentioned investing in real estate using a self directed IRA, and since then I have received a ton of questions about how this works. While I am very capable of helping … (1 comments)
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7 Ways to Increase Your Commercial Real Estate's Cash Flow - 11/22/11 06:53 PM
There are a wide variety of ways to increase the income of any commercial property. Some of the most common ways are listed below, but there are many others including tenant signage, cell towers, art sales, wireless internet and billboards.
Via Joseph Cacciapaglia (BMC Capital):
I met with an investor in downtown Reading, PA this weekend that was selling a mixed-use property. The property was well located and in great condition. What was most interesting though was that the property had several streams of income. This was a very sophisticated investor who was able to create income well beyond what would have been expected for the property's size. This got … (0 comments)
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NNN or Gross... What's The Best Type of Commercial Lease - 11/22/11 06:47 PM
There are numerous types of commercial leases used everyday and it's important to know what your getting with each. Some commercial leases allow for the Landlord to pay all the expenses while others call for the tenant to pay a portion of the property taxes, maintenance, and/or insurance. Be sure your comparing "apples to apples" when evaluating your next commercial lease.
Via Joseph Cacciapaglia (BMC Capital):
NNN (Read as Triple Net) leasing is one concept in commercial real estate that is often misunderstood. I was in a meeting on Friday with a number of commercial real estate professionals and the topic of NNN … (1 comments)
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Sold: Convenience Store West Monroe LA - 11/22/11 06:38 PM
Sold: Conveniece Store West Monroe LA
The Stop and Save Convenience Store at 2809 Cypress Street in West Monroe, LA was sold by Circle K Stores, Inc. on September 27, 2011. The property was purchased for $675,000 by Tejanie & Dahal Investments, LLC. This property is located at the Southeast corner of North 7th Street and Cypress Street and contains approximately 3,000 square feet of retail space and six gas pumps. Demographics in the area indicate a 5-mile population of 62,074 people with an average household income of $57,503. The latest traffic counts in the area are 17,382 vehicles per day on … (1 comments)
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Sold: Monroe Motor Speedway - 11/22/11 05:57 PM
Sold: Monroe Motor Speedway
On November 10, 2011 the former Monroe Motor Speedway was auctioned by Biz Capital Bidco II, LLC for $726,000. The buyer was G & J Investments of Ouachita, LLC.
The 55-acre property is located just off Interstate 20 at the intersection of Wagon Wheel Road and Frontage Road. Built in 2008, the property includes a 0.375 mile concrete oval track banked at 12 degrees and a 4,000 seat bandstand. Originally constructed for approximately $6.5 Million the track featured racing of modifieds, late models, legends, bombers, bandeleros, and compacts. The track officially closed around June of 2010.
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Core, Core Plus, Value Add, and Opportunistic - 4 Commercial Real Estate Strategies - 11/16/11 12:27 AM
What is your commercial real estate investment strategy? Most investors fall into one of four categories: Core, Core Plus, Value add, or Opportunistic and of course risk tolerance plays a big part.
Via Joseph Cacciapaglia (BMC Capital):
As I mentioned in an earlier post, there are lots of terms used by commercial real estate investors that often confuse or intimidate novice investors. I promised to define some of these terms in occasional blog posts. Well today is your lucky day, because I decided to define four related terms: Core, Core Plus, Value Add, and Opportunistic. These are the four investment strategies, and most … (0 comments)
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Leverage Your Time - Invest in Commercial Real Estate - 11/16/11 12:20 AM
Are you tired of chasing down rent for your apartments or hearing the latest excuse why someone didn't pay on time. You can lighten your load and reduce your headaches by exchanging your residential investments for commercial properties. Commercial property tenants typically sign much longer leases, handle their own light maintenance, and pay like clockwork since their business depends on it.
Via Joseph Cacciapaglia (BMC Capital):
Most of the commercial real estate investors that I know started off in the real estate business as residential investors. As you can imagine, most people don't start off by buying a mall or a hotel. So … (0 comments)
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Micro-Tenants: One Creative Way to Market Your Commercial Space - 11/16/11 12:01 AM
If your having trouble with vacancies consider thinking outside the box. Segmenting large spaces into smaller suites opens up a much broader range of potential users that can afford to lease your property.
Via Joseph Cacciapaglia (BMC Capital):
If you are a serious commercial real estate investor sooner of later you are going to find yourself owning a property that is difficult to lease. Tenant's preferences change and what may have been attractive space a few years ago can quickly become obsolete. This problem is multiplied when the property is particularly large. Leasing to Micro-Tenants is one strategy that I've seen used to … (1 comments)
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A Better Way to Negotiate Your Sale or Lease - 11/15/11 11:23 PM
Interest Based NegotiationEssentially there are two approaches to negotiation, adversarial and non-adversarial. The non-adversarial approach is often referred to as interest based negotiation and has recently been the target of extensive research. Adversarial negotiation typically starts out with one party making an unrealistic offer which in turn causes the other party to make an equally unrealistic proposal. This approach inevitably leads to finger pointing, blame, and a very difficult negotiation where both parties feel they have given too much. Interest based negotiation re-directs the focus away from price only and stresses a broad range of benefits both parties have in completing … (1 comments)
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SOLD: Office Building Monroe LA - 11/14/11 03:54 PM
SOLD: Office Building Monroe LA
The Office Building at 1811 Tower Drive Monroe LA sold for $1,200,000 on September 28, 2011. The Buyer was 1811 Tower Drive, LLC and the Seller was Welsh Properties Limited Partnership.
The property was built in 1969 and includes 13,739 square feet of useable space and the building does have a sprinkler system. Approximately 65 parking spots were included in the sale.
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SOLD: Land at Downing Pines & Cypress Street, West Monroe LA - 11/14/11 03:44 PM
SOLD: Land at Downing Pines & Cypress Street, West Monroe LA
The Southwest corner of Downing Pines & Cypress Street in West Monroe LA was sold for $700,000. The sale took place on October 20, 2011. The Buyer was K & A of Monroe, LLC and the Sellers were David Crew, Arthur Brooks, and John Green. The Buyer intends to develop a convenience store along with some retail space for lease.
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SOLD: Ruston LA Apartments - 11/14/11 03:32 PM
SOLD: Ruston LA Apartments
The apartments at 2810 W Barnett Springs in Ruston LA have sold for $2,073,500. The sale took place on October 16, 2011. The apartment property consists of 37 apartments on 3 acres and had a 9% vacancy rate at the time of closing.
We specialize in apartment properties and are constantly keeping track of market trends and off market properties for sale. If you are looking to purchase or sell apartments, contact Ryan Roark at 318-348-5815.
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Restaurant For Sale West Monroe LA - 11/14/11 01:06 PM
Restaurant For Sale West Monroe LA
The Mohawk Restaurant is available for sale in West Monroe near Interstate 20. Built in 2004,and located near Thomas Road and Interstate-20, this restaurant is in the heart of West Monroe's restaurant row. The area is surrounded with numerous hotels and large retailers including Walmart and Academy Sports.
The sale includes tables, chairs, barstools, walk-in freezer, two walk-in coolers, beverage coolers, security system, TVs, music and paging system, POS system, and all kitchen equipment (Auto-chlor and Coca-cola systems are leased). The restaurant encompasses approximately 5,371 square feet and the seating capacity is 180 people. The … (0 comments)
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Evaluating Commercial Tenants - 2 Important Ratios - 11/14/11 12:02 PM
How are you evaluating your commercial tenants? If your interested in quickly determing the financial strength of potential tenants, take a look at these 2 important ratios below.
Via Joseph Cacciapaglia (BMC Capital):
It's been a little while since I added to my series on evaluating commercial real estate investments. If you recall, we were analyzing a small retail property in downtown Reading, PA. We looked at several aspects of the property's performance, from NOI through IRR, but one thing that we did not look at was the quality of the tenant. There are several things to consider when looking at a potential … (0 comments)
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Sale/Lease-Back - What's the Point? - 11/14/11 12:00 PM
If your business is in need of cash to expand, consider a sale/leaseback of your property. You can still maintain control of your property while taking your equity that's frozen into your real estate and put it to work in your business.
Via Joseph Cacciapaglia (BMC Capital):
In an earlier post I mentioned several types of businesses that make good sale/lease-back transactions. Since then I've been asked why a business would want to take part in this type of transaction. In a sale/lease-back a owner occupant of a building sells the property and then signs a lease with the new owner to stay in the space. … (0 comments)
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Investing in Commercial Real Estate is as easy as ABC - 11/14/11 10:56 AM
When comparing numerous factors among several properties for purchase, it's always helpful to use a framework of reference and grade each property based on the quality of each amentity. Location will generally be the most important since it's the one thing you can't change.
Via Kim McMahon (Executive Realty Group):
Investing in Commercial Real Estate can be as easy as A-B-C - alright maybe not, but knowing your ABC’s can save you a lot of time and frustration. Certainly when your deciding what and where to invest. Commercial properties are defined -or classified- by a letter system. While classifying can get a … (1 comments)
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Triple Net leases vs Full Service Gross leases - 11/14/11 10:17 AM
When comparing lease options its very important to know what is included in the price. Knowing whether a lease is Gross or Triple Net (NNN) is a start, but be sure to get all the details.
Via Stuart Dobson (Surety Realty Inc.):
Landlords in the commercial space offer a variety of different lease types for tenants. Some of these lease types include: Full Service Gross (FSG), Modified Gross (MSG), Industrial Gross (IG), Net (N), and Triple Net (NNN).For the sake of this article, we’ll be speaking about the differences between Full Service Gross (FSG) and Triple Net (NNN). Simply put, with an … (0 comments)
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Evaluating Commercial Real Estate Investments - Calculating Cash on Cash Returns - 11/13/11 10:38 AM
How to Evaluate Your Investment Real Estate Purchase:
Cash on Cash Return is one method of determining how good a deal your actually getting, but it makes comparing several different investment opportunities very easy.
Via Joseph Cacciapaglia (BMC Capital):
I'm sure if you've read my earlier posts you may be wondering when this will all end, but today we are finally getting to the good stuff: Returns. Why are you investing in commercial properties in Reading, PA? I'm guessing it's because you'd like to make some money. One measure of how much money you'll make on your investment is Cash on Cash Returns, also know as … (0 comments)
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CCIM - Did you know? - 11/13/11 10:30 AM
The CCIM designation for Commercial Real Estate Professionals requires its members to complete several graduate level courses in Commercial Real Estate finance, investments, and market analysis as well as having sold over $5 Million of Commercial Real Estate within two years.
Via Erik Johnson, CCIM (Paul Johnson and Associates):
A Certified Commercial Investment Member (CCIM) is a recognized expert in the disciplines of commercial and investment real estate. A CCIM is an invaluable resource to the commercial real estate owner, investor, and user, and is among an elite corps of more than 9,000 professionals who hold the CCIM designation across North America and … (1 comments)
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5 Questions To Ask When Considering Your Retail Center's Tenant Mix - 11/13/11 10:16 AM
RETAIL Real Estate: How will your new tenant affect your existing tenants? Some Landlords never consider their tenant mix and it can have a detrimental effect on the value of your shopping center.
Via Joseph Cacciapaglia (BMC Capital):
Like most commercial real estate, value is created in retail properties through effective leasing. One important aspect to consider when leasing your retail real estate is your tenant mix. In other words, you need to consider how your tenants businesses relate to one another. Here are five questions to ask your self when evaluating a new tenant for your retail property in Reading, PA:
Does … (0 comments)
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Ruston Retail Space - 11/11/11 09:03 AM
Ruston Retail Space
Trying to find Ruston Retail Space? It can be challenging to find the perfect location considering the recent commercial real estate boom in Ruston LA. With Interstate 20 running right through the heart of the city, the first question that needs to be answered is does your business need to be on the Interstate. Property along Interstate 20 is generally more expensive, but it also comes with alot more exposure and traffic counts. Recently, the city of Ruston converted two of the most utilized service roads to one-way traffic and has plans to convert the remaining service … (0 comments)
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Ruston Office Lease - 11/10/11 03:55 PM
Ruston Office Lease
Ryan Roark recently completed a lease with a Fortune 500 insurance firm valued at over $550,000 in Ruston, LA.
Historically, most office users in Ruston have located on the South side of the Interstate where the majority of commercial buildings are located. Several new Ruston office lease spaces have been built recently on the North side of town including Kentucky Plaza on E. Kentucky Avenue and Northpointe Office Park on Farmerville Highway. These buildings are filling up fast which would generally indicate strong demand and the possibility of similar developments in the future.
Ruston … (0 comments)
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Vote To Stay Tax Free Louisiana Nov 19 2011 - 11/09/11 06:25 PM
Vote for Amendment #1 on November 19th and tell all your friends and family we want to keep Louisiana Tax Free. Amendment #1 will prevent you from ever paying any transfer fees and taxes when buying or selling real estate in Louisiana. Please vote and tell your friends.
Via Frank Rubi New Orleans LA | Kenner | Slidell (Search New Orleans Homes for Sale ):
In today edition of the Times Picayune, the article clearly explains why the passage of Amendment #1 is so important. If pass (Vote for Amendment #1) No real estate transfer fees will be allow in Louisiana. The only … (0 comments)
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Retail Space West Monroe LA - 11/09/11 06:15 PM
Retail Space West Monroe LA
Thinking about opening a business and looking for Retail Space West Monroe LA. A number of opportunities currenly exist throughout the city with great traffic counts and visibility depending on which demographics and/or pyschographics your company is looking for. Some of the more popular retail clusters are located along Cypress Street, Thomas Road, Bridge Street, North 7th Street, and Well Road.
Larger retailers looking for Retail Space West Monroe LA may consider a site near the intersection of Thomas Road and Interstate 20. Some of the larger retailers in this area include Walmart, Academy Sports, and … (1 comments)
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Retail Space Monroe LA - 11/09/11 05:59 PM
Retail Space Monroe LA
Are you considering opening a business and looking for Retail Space Monroe LA? There a currently a number of opportunities throughout the city with great visibility and traffic counts depending on the particular demographics and/or pyschographics your company is looking for. Popular retail clusters are located along Forsythe Avenue, Louisville Avenue, North 18th Street, Highway 165, Garrett Road, and Desiard Street.
Larger retailers looking for Retail Space Monroe LA may consider a site near the Pecanland Mall and Pecanland Commons developments at Interstate 20 and Garrett Road. A cluster of big box retailers including Sam's Club, Best … (0 comments)
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Ryan Roark, CCIM Commercial Real Estate Monroe LA
Monroe,
LA
More about me…
Keller Williams Commercial
Address: Attn: Ryan Roark - Commercial Real Estate, 1390 Hudson Lane, Monroe, LA, 71201
Office Phone: (318) 348-5815
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