All Forum Posts by: Uwe S.

Scott, thats only a scenario for me as buyer. But thanks for the big answer.

Say, the seller gives 6% to his broker/agent and I give an offer without an "buyer" agent, the sellers agent becomes the complete 6% or only 3% then??

In Germany the buyer and the seller gives his agent independent 2-3%.

-Uwe

Hijacking this topic, if you have buyer and seller agents, how much is then the fee for the seller. Split the agents this 5% fee 50/50 or comes a plus of 5% for buyers agent?

-Uwe

Hello Ashley,

Welcome to the BP-Nation :).
Here you become the best advices, informations and colleagues and all other what you need for your business called Real Estate.

-Uwe

Or any clarifications here, what must be inside a normal offer?

-Uwe

Steve,

Thanks again. I reply to your thoughts:
1. I dont know the word "leveraging", but the owner has the offer on his table. The broker tolds me the propertie is 6-7 months on market and the ask price was decreased from $119k to now $95k. And I bid $87k, so the owner has a little trouble, thats fact.
2. Not really.
3. No, the last 1.5 years profit and loss shows maintenance investments of $3,9k. The property manager works since 12 years for the owner and the properties was allways 96% occupied. Important is, a big bank is next door and MC Donalds, Burger King and a middle Shopping Mall one block away. The next house behind the propertie was demolished from the city in August and is now for sale, $2k. Today the tenants share the off street parking on the banks propertie, for the future I guess to use this propertie behind the house.
4. I have no funding and I have no EMD given on the offer, only he accept the offer a become an EMD. The broker and the owner knows about my nationality.

Steve can you send me an example for an correct offer? What you used? Thanks.

-Uwe

Thanks Steve, I see I must relearn many things that different is in the US.
The Broker of the seller told me yesterday the seller need 2 weeks respite.
Does that normal? Or he will wait for an offer from another buyer.

-Uwe

-Uwe

Vikram,

fine, thats the answer to my problem.

In Germany we seeking the last three years NOI and compare it with the sales price, then we have our "German CAP". Then we calculating the gross income with 15% vacancy (firm factor) and less estimated expenses and we have a round figure of the new NOI. These both numbers multiplied and we have the propertie value.

Thats byzantine ^^. Thank you Vikram.

-Uwe

Hello :),

I saw in Brandons Topic the calculation of commercial properties in the US. I was little confused about this.

CAP RATE = NOI / COST
therefore
COST = NOI / CAP RATE

is okay for me, but in Brandons case the Cost is $580k (purchase price of the apartments), when I divide the NOI of $70k with $580k I become 12.06% CAP Rate. And $70k divided with 0.1206 is $580k.
But why involve the surrounding areas? In Brandons case 8.5% CAP, so he calculated and came to a value of $823k for this complex. In California it gives areas with 4% CAP in this case the value is $1,75 million. I can´t understand it.
Lower CAP rates = higher propertie value?

In Germany we calculate for the whole complex and only for the complex, not the area. Is the CAP Rate for the complex 12.06% and brings the property $70k NOI, then we make following.

VALUE = NOI x CAP ($844k = $70k x 12.06)

Is the area involved with 8.5%, the calc would be ($595k = $70k x 8.5), so the value only $595k for the propertie (undervalued).

Maybe I have a lapse now, but its important to correct this for my calculations in the US. So please help me out.

Thanks Brandon and Vikram for this impulse.

-Uwe

Vikram,
Its clear for me this calculation, but I see we make other calcs in Germany as in the US. I will not hijack Brandon´s Topic, so I open a new one.

Sorry Brandon ;).

-Uwe