All Forum Posts by: Bjorik Mutize

Also look at historic cap rates in your market

Retrading because of incorrect/inefficient underwriting on your mistake or cold feet would be unacceptable. Major finds during due diligence such as large scale mechanical issues or underlying financial issues within the deal is ok.

Major and not obvious.

I broker plenty of industrial properties. A few things of course with single or multi-tenant buildings is tenant strength, term of lease, and your net effective rent. Even with industrial properties you can look at your NOI from total rent income(usually on NNN basis rent+tax/cam) minus term expenses. Key things within the asset itself include clear height, wide columns, lighting, floor strength, efficiency with loading(dock vs drive in's, quantity, quality), highway access, and building visibility.

Vacancy will depend. My market we are sitting in middle 4%.

@Janel Y. welcome to BP and great to meet another local investor. Please reach out for any questions real estate and hopefully meet at other events down the line!

Bjorik

@Louie Jhan Centeno Maglaque good stuff man. Like it for the first go around. Definitely re-run this model once you get verified numbers and see how it looks!

What's the story behind this property? Straight forward SFR? My quick tid bits below

1) Planning no repairs to the property?

2) Cap Ex and Repairs can be bumped, management will most likely be lowered

3) Check your vacancy assumption vs market

3) Good conservative growth assumptions(1%)

Yea, i'm wondering what put that expense number so high in 2018. If there is a specific line item. If not and that is consistent, you may be treading slim with this property.

Make sure you lock in your confidence for your rent increases.

Winter months tend to be tougher. People don't want to move in climate sensitive regions. So for places like where i am, dead periods usually are from October-March, April. You would want a lease locked in to extend through these periods so you have expiration in spring and summer time. Also, getting a lease signed before this time is ideal as well(August, September). I always think school start and end times.

Whatever you do, don't buy a jet.

@Jordan Archer @Brian Burke hit it. You can alternate your performing and exit cap by simply changing your NOI during hold and sale.(Reduce expenses and/or Increase income through rent premiums).