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10 February 2024 | 0 replies
16 terms you need to know in commercial real estate:1.Internal Rate of Return (IRR): A metric used to estimate the annualized return on an investment based on the timing and magnitude of cash flows.2.Cash-on-Cash Return: The annual income generated by a property expressed as a percentage of the initial cash investment.3.Discount Rate: The rate used to discount future cash flows to their present value in financial models; often represents the required rate of return.4.Capital Expenditures (CapEx): The funds set aside for property improvements, renovations, or major repairs.5.Gross Operating Income (GOI): The total income generated by a property before subtracting operating expenses.6.Operating Expenses: The costs associated with managing and maintaining a property, including utilities, taxes, insurance, and maintenance.7.Debt Service Coverage Ratio (DSCR): A measure of a property’s ability to cover its debt payments, typically calculated as NOI divided by debt service.8.Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the property’s appraised value, used to assess risk in financing.9.Equity Multiple: A measure of the total return on an investment, calculated as the ratio of total cash flows to initial equity investment.10.Residual Land Value: The estimated value of land after deducting development costs and desired profit margins.11.Sensitivity Analysis: A technique used to assess how changes in key variables (e.g., rent, expenses, interest rates) affect financial model outcomes.12.Operating Pro Forma: A projection of a property’s income and expenses over a specified period, typically used for budgeting and financial analysis.13.Cash Flow Waterfall: A structured distribution of cash flows to different stakeholders in a real estate project, often involving equity investors, lenders, and developers.14.Leverage: The use of borrowed funds (e.g., a mortgage) to finance a real estate investment, potentially amplifying returns but also increasing risk.15.Equity Investment: The amount of money invested by equity partners or investors in a real estate project. 16.
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10 February 2024 | 27 replies
Or, every syndicator, even if the plan is a 5 yr hold, should have the 10 yr proforma completed as a "sensitivity analysis".
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9 February 2024 | 20 replies
California has specific mold laws - I suggest you read up on themCalifornia's "Toxic Mold Protection Act of 2001" authorizes the state's Department of Health Services (now called the Department of Health Care Services) to set permissible levels of indoor mold exposure for sensitive populations (like children, or people with compromised immune systems or respiratory problems).
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8 February 2024 | 9 replies
can be overwhelming because they include things like a "Monte Carlo Simulation" or "Sensitivity Analyses"... just get a grasp of the fundamentals like cap rates etc. and go from there.3.
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7 February 2024 | 13 replies
If he is plagiarizing, there is no thinking what he will do with your sensitive information.Below is a link of him plagiarizing. it is also seen in his response to your post...Run!!
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7 February 2024 | 40 replies
I would like to build a tool that will find properties that fit my criteria in a given region, then return some of the profitability metrics, sensitivity analysis, and so forth to help me quickly find suitable investment opportunities and return that into a nice report.
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6 February 2024 | 3 replies
When you're using FHA, you're sensitive to every dollar that goes towards expenses.
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6 February 2024 | 12 replies
In my case, in South Carolina, it seems like the cost would be the same, and this is not especially time-sensitive.
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4 February 2024 | 4 replies
Getting 5 star reviews is a learning curve as you need to be a good communicator and be sensitive to guest needs, staying booked is about demand and whether your place is priced appropriately.
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2 February 2024 | 21 replies
.This situation is not only frustrating but also time-sensitive due to the looming loan deadline.