Four (4) Factors in Investment Definition: Investment
|
|
- Lesley Haynes
- 5 years ago
- Views:
Transcription
1 Introductions Your name Where you work Your job responsibilities How long you have been in the industry What you hope to get from this class Chapter 1: Investments Agenda 2 Investments Adding Value to the Investment Economic Analysis of a Property Budgets Property Valuation 3 4 Four (4) Factors in Investment Definition: Investment An investment is the use of funds to earn a profit. We will discuss: - What are investments and whether to make them - Advantages and disadvantages of investing in multifamily housing - Different types of ownership and methods of financing 5 Risk low risk = low return high risk = high return Income may depend on risk involved Growth means a potential to increase in value >NOI = greater value Liquidity - ability to convert to cash 6 1
2 Owner s Objectives Why is it important to know the owner s investment objectives for the property you manage? Activity #1: How the Four Factors Affect Investments How do general economic and market conditions affect investments? Why is it important to know the owner s objectives for the property you manage? 7 8 Performance Measures Rate of return on investment (ROI) Cash-on-cash return Capitalization rate Internal rate of return (IRR) ROI Rate of return on investment = performance measure used to evaluate the efficiency of an investment Return can be cash, cost to manufacture vs. price, appreciation growth or some other benefit compared to cost Benefit/Cost = Return 9 10 Capitalization Rate NOI/Purchase Price = Cap Rate NOI/Cap Rate = Value Exercise We paid $7,000,000 for a property and the NOI is $500,000. What is the cap rate? Divide NOI by 6%
3 Remember Lower cap rate = higher value Higher cap rate = lower value Advantages of Investments Advantages include: Periodic cash payments Potential for increase in value Reduction in income taxes due to depreciation Ability to invest using borrowed funds Disadvantages of Investments Disadvantages include: Real estate is not a liquid asset Active participation is often required Potential for risk (natural disasters, changes in market conditions) Forms of Ownership Direct ownership/sole proprietor Limited liability partnership Limited liability corporation S corporation Joint venture Real Estate Investment Trusts (REITs) Tenants in Common (TICs) Types of mortgages Fixed rate Variable rate Balloon Bullet loan Where to obtain a mortgage Commercial banks Finance companies Savings and loan institutions Insurance companies Pension funds Mutual funds Federal government (Freddie Mac, Fannie Mae)
4 Skill Check #1 Chapter 2 Chapter 1- Investments Adding Value to the Investment Adding Value: CAM Responsibilities 1. Generating and collecting as much income as possible 2. Controlling expenses 3. Meeting the financial goals of the investment Additional ways to add value: Reduced staff turnover and lower personnel costs Reduced resident turnover with better customer service Aggressive rental rates set by unit type New income sources through resident services Better collection of resident charges Sources of Income Rent Administrative Fees Parking/Garage fees Pet fees Laundry room/ Vending Late fees/collection fees Clubhouse rental/ video rental Car wash Cable/Internet/ Phone Types of Expenses Maintenance Administrative Salaries/Personnel Taxes Insurance Utilities Contract services Advertising and Marketing
5 Three Factors That Affect Rental Income Competitive rental rents Physical occupancy Collection percent or economic occupancy Concession Impact Market rent = $700 Concession = one month rent What is the Effective Rent? Law of Supply and Demand If the demand is high and the supply is low, higher prices can be obtained. If demand is low and the supply is high, rents must be made competitive to attract residents. Economic Conditions Population growth Household formation Job creation Balancing Rental Rates and Vacancies The goal is to maximize income, not occupancy Pricing too high may cause longer vacancy Pricing too low means you are losing money while the unit is occupied Increasing Rental Rate Market value = $800 Raise rent 10% = $880 Vacancy = 15 days What is the cost of the vacancy? At the new rate, how long before you recover the vacancy loss?
6 Lowering Rental Rate Market value = $800 Lower rent 10% = $720 Loss per month = $80 Loss per year = $960 What would you lose if you did not lower the price and the apartment sat vacant for a month? Before adjusting rent, analyze the four P s: People Product Promotion Price Determining Pricing Conduct a market analysis Use an automated revenue management system When to Consider a Rent Increase When any floor plan remains 95% or more occupied or that remains full even when the community turnover ratio averages below 55% When rents fall below levels indicated by a comparative rent analysis Anytime a community is full Upon owner request Rental Increases: Current residents Increase rent as leases expire, OR Increase rent selectively on expired leases using a quantifiable, non-discriminatory standard (years of residence or number of previous renewals) Consider a renewal rate that is slightly lower than the new market rate as an incentive to stay Provide 60 days notice prior to the effective date of the increase Managing Occupancy: Reports Occupancy reports Rent roll Delinquency report Deposit/Income reports Concession report Demographics report
7 Managing Occupancy: Methods Calculate occupancy trend Manage lease expirations Calculate turnover ratio Activity #2: Adding Value Expenses Fixed property taxes, insurance Variable utilities, turnover costs, etc. Capital- appliances, HVAC, etc. Replacement Reserve Account Debt service Cost Benefit Analysis Potential Expense Dollars Time Image Potential Benefit Income Time Employee satisfaction Market position Image Accounting Practices Budget control log Invoices Purchase discounts Check request or payment vouchers Petty cash Resident records Resident security deposit Collection of former resident accounts Skill Check #2 Chapter 2: Adding Value to the Investment
8 Chapter 3 Economic Analysis Economic Analysis of a Property Balance Sheet When analyzing a property, ask - How well has a property performed over a specific time period? - Where does a property stand at a given date in time? May 31, 2010 ASSETS Petty Cash Cash Cash Fund Prepaid Insurance Building 16,350,000 Less Depreciation 885,000 Building Net Land Furniture & Equip 400,000 Less Depreciation 100,000 Furniture & Equipment Net Escrow Total Assets LIABILITIES Accounts Payable Notes Payable Accrued Interest Payable Accrued Property Tax Security Deposit Liability EQUITY Partners Equity Distributions to Partners Prior Period Earnings Current Earnings Total Equity Rental Income Other Income (Fees, Vending, Utilities) Vacancy & Collection Loss Effective Gross Income ,055 7,700 Operating Expenses Fixed Expenses Real Estate Taxes Insurance Variable Expenses Payroll Repair & Maintenance Utilities Contract Services Administrative & General Management Fee Advertising & Leasing 15,465,000 3,750, , ,000 19,534,055 55,000 12,275, , ,000 96,000 13,485,700 9,010, ,500-2,544,500 15,000 6,048,355 Total Operating Expenses Net Operating Income Other Expenses Interest Replacement Reserves Total Expenses Cash Flow 45 $19,450,000 1,815,000-97,500 $21,362,500 $1,268,000 97, , ,800 1,636, , , , ,000 $4,737,500 $16,625, , ,000 1,112,000 5,849,500 15,513, ,534,055 Accounting Methods Cash Flow Accrual- records all income and expenses in period they were earned or incurred, regardless of when received or paid Cash- records all income and expenses when they are actually received or paid The amount of money left after all sources of income are collected and operating expenses, capital expenses and debt service have been paid Often referred to as the operating statement
9 Gross Potential Rent (GPR) Current rent charged at 100% occupancycombines the sum of occupied units at current lease rents plus vacant units at market rents 100% of possible income All other income and expenses measured and evaluated as % of GPR Market Rent Total annual income received if 100% of all units were occupied and paying market rents Loss to Lease Variance between market rent and lease rent Market rent that is lost due to lease rents at rates lower than the market rate For many companies it is a separate line item on the operating statement Loss to Lease Example Annual market rent of $1,375,025 with a loss to lease of $125,700 has a loss to lease of 9.1% 125,700/ 1,375,025=.0914 or 9.1% GPR of $1,249,325; market rent of $1,375,025 less loss of $125, Vacancy, Concession, and Collection Loss (VAC) Total value of rent loss from vacant units, concessions given, collection losses from bad debt write-off, rent loss from nonrevenue units Standard for uncollectible/bad debt- 2% of GPR VAC can be higher than10% of GPR Effective Gross Income (EGI) GPR less vacancy, concessions, and collection loss. Also called net rental revenue or total rental income Represents all rent and only the rent income at the property GPR-VAC= EGI
10 Other Income (OI) Income from items other than rent Laundry, cable, parking, amenity charges, pet fees, application fees, administrative fees, lease premium fees, late fees Fee policies established by owner or manager Up to 10% of GPR- NAA survey in % of GPR or $753 per unit Gross Operating Income (GOI) EGI + OI = GOI Property s total revenue Available to pay property s operating expenses, capital improvements, and debt service Operating Expenses (OE) All expenses fixed and variable incurred in the course of managing the property Controllable and uncontrollable expenses Capital expenses and reserve for replacement costs are not typically considered operating expenses Net Operating Income (NOI) GOI-OE=NOI Applying cap rate to NOI allows you to determine property value using the income approach Operating Expense Ratio Expense to income ratio Evaluation tool to measure property performance and expense control % of GPR used to pay operating expenses Ratio depends on age, location, property type, and expense classification OE/GPR= operating expense ratio 2010 NAA survey showed national OE ratio of 40% Capital Expenses (CE) Also called capital improvements Includes non-recurring expenditures like appliances, roofing, carpet replacement, etc. intended to add to the life of the property and its fixtures Offer ability to depreciate over time
11 Debt Service Mortgage or loan payment- principal and interest payment Fixed rate mortgages usually have level monthly payments that amortize the loan Break-even Occupancy Ratio (OE + DS) GOI 1,803,800 +1,278,000= 3,081,800 3,081,800 4,359,000 = 71% Break-even Rent Per Sq. Ft. (OE + DS) total square feet $1,803,800 + $1,278,000= $3,081,800 $3,081, ,000 = $4.05 Cash Flow Calculation Gross Potential Rent (GPR) -Vacancy, Concessions, collection losses (VAC) = Effective Gross Income (EGI) + Other Income (OI) = Gross Operating Income (GOI) - Operating Expenses (OE) = Net Operating Income (NOI) - Capital Expenses (CE), Reserve Payments (RR), and Debt Service (DS) = CASH FLOW Activity #3: Cash Flow Calculate the cash flow of the NAA Apartments The General Ledger Provides more detail of major financial statements Chart of Accounts Know cut-off date for invoices to be submitted
12 Skill Check #3 Chapter 3: Economic Analysis of a Property Chapter 4 Budgets Purpose of a Budget To estimate expected income and expenses to determine what occupancy levels will be needed to cover expenses and provide a return on investment To monitor the property s performance To evaluate performance of personnel Lease-up Budget Special attention paid to activities and costs associated with attracting residents, signing leases and generating income Information used for projecting expenses depends on your and your supervisor s previous experience Modernization Budget Reflects larger allocations for capital expenses and labor Must be flexible if the work is dependent on contractors schedules and vendors supplies May include periods of no rental income while work is being done in part or all of the building May be prepared separately from the operating budget of a property and be for a short time only Stabilized Operating Budget Reflects varying expenses from month to month Examples: Utilities for heating would be higher in winter months Utilities for cooling would be higher in summer months Snow removal would be posted only for winter months
13 Tips for Developing Budgets Use round numbers Use current figures Prepare early Seek input Extrapolation/Annualization CAM Responsibilities Managing the budget Analyzing variances Explaining variances Recommending action Activity #4: Review a Budget Identify figures that may point to extraordinary conditions or needs. Skill Check #4 Chapter 4: Budgets Chapter 5 Property Valuation Property Valuation The process of determining the value of a property in order to make financial decisions regarding the property
14 The Cost Approach Estimates the current cost of reproducing or replacing the improvements, minus the loss in value from depreciation due to age, condition or obsolescence, plus land value Important when there is no market activity and a sales approach cannot be used to value a property The Sales Comparison Approach In this approach, the market value of a property is directly related to the prices of comparable competitive properties Most useful when there are several similar properties in the local market that have been recently sold or are currently for sale The Income Capitalization Approach This approach uses methods, techniques and math procedures to analyze a property s ability to generate income and convert future earnings to present-day dollars Capitalization Value = NOI/Overall capitalization rate Skill Check #5 Chapter 5: Property Valuation 83 14
Financial Management PRESENTED BY: SAMPLE
Financial Management SA M PL E PRESENTED BY: LIMITS OF LIABILITY AND DISCLAIMER OF WARRANTY 2014 by the National Apartment Association, 4300 Wilson Boulevard Suite 400 Arlington, VA 22203. All rights
More informationSales Associate Course
Sales Associate Course Chapter Seventeen Real Estate Investments and Business Opportunity Brokerage 1 Investment Analysis Most important consideration: Economic soundness Land use controls Zoning Deed
More informationESTIMATING NET OPERATING INCOME (I O )
ESTIMATING NET OPERATING INCOME (I O ) S P E C I A L S K I L L S ESTIMATING NET OPERATING INCOME (IO) (STAGE 5) Gross Income (GI) Rental Income Parking Income Other Income Total Possible Income - Vacancy
More informationProject Economics: The Value of Leasing. Russell Banham, Savills
ICSC European Retail Property School Project Economics: The Value of Leasing Russell Banham, Savills (Investment, Development & Asset Management) Introduction Who I am Russell Banham Over 30 years of experience
More informationFinancial Bootcamp. Participant Guide SAMPLE
Financial Bootcamp Participant Guide September 2017 2017 National Apartment Association 2 Table of Contents Section 1: Welcome... 6 Participant Introductions... 6 Learning Goals and Objectives... 6 Section
More informationH. Chart of Accounts. Please note that accounts marked with an (*) are not used for budget purposes.
H. Chart of Accounts PHFA does not require a property to utilize any prescribed chart of accounts in their internal accounting system. However, when information is reported to PHFA, the following Chart
More informationRetail Acquisition Example
Property Information Retail Acquisition Example Project Assumptions Acquisition Assumptions Property Name Retail Acquisition Example Project Type Acquisition Location Austin, TX Acquisition Cost $1,800,000
More informationBasics of Commercial Real Estate Transactions Day Two
Basics of Commercial Real Estate Transactions Day Two John Rockwell, Partner Energy October 12, 2016 PG&E refers to the Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. 2010 Pacific
More informationFOR SALE. $8,900,000 MultiFamily. Batesville, Ar Harrison Street PROPERTY HIGHLIGHTS
$8,900,000 MultiFamily Batesville, Ar 72501 FOR SALE 4323 Harrison Street PROPERTY HIGHLIGHTS 104 Total Luxury Units 72-2 Bedroom, 2 Bathroom Units 16-3 Bedroom, 2 Bathroom Units 16-1 Bedroom, 1 Bathroom
More informationPreface Who Should Read This Book 3 Organization and Content 4 Acknowledgments 5 Contacting the Author 5 About the Author 6
Preface.................................................................... 3 Who Should Read This Book 3 Organization and Content 4 Acknowledgments 5 Contacting the Author 5 About the Author 6...........................................................
More informationCost Segregation Instructor Teaching Schedule (3-Hour)
Time Topic Pages Student Objectives 8:30-8:35 Course introduction Page 2 What is cost segregation? Objective of cost segregation: to increase cash flow Benefit of cost segregation Learning objectives Page
More informationBaric Lawndale S. Karlov St Chicago, IL Buildings. 115 Total Units. Rehabbed Buildings with all Separate Mechanicals
For more information contact: MIC PROPERTIES micproperties@gmail.com 8 Buildings. 115 Total Units Rehabbed Buildings with all Separate Mechanicals Large Units with an Attractive Mix (86-3BR and 29-2BR)
More informationBridge Financing & Valuation Trends Amid a Changing CRE Landscape ARBOR.COM 800.ARBOR.10
Bridge Financing & Valuation Trends Amid a Changing CRE Landscape ARBOR.COM 800.ARBOR.10 Today s Speakers Gianni Ottaviano Senior Vice President, Structured Finance Production, Arbor Realty Trust, Inc.
More informationContract-Related Intangible
Income Tax Insights Valuation of Contract-Related Intangible Assets Robert F. Reilly, CPA The valuation of contract-related intangible assets is often an issue in matters related to income tax, gift tax,
More informationThe rental levels will be based upon contract rent for the leases in place and is provided below:
PROJECT 1: TWIN PINES FINANCIAL DATA Leases The potential income relates to rentals being obtained from tenants occupying space in the project. A current rent roll was provided, and it is assumed that
More informationReal Estate Accounting
Real Estate Accounting Course Instructions and Final Examination The CPE Store 819 Village Square Drive Tomball, TX 77375 1-800-910-2755 Real Estate Accounting Table of Contents Page Course Objectives...
More informationUpper Lakeshore Mobile Home Park
For more information contact: Certified Commerical Broker/Owner rroberts@ccim.net $1,295,000 New Asking Price $155,000 PRICE REDUCTION HUGE VALUE ADD PROPERTY MOTIVATED SELLER Phone: 509-248-9400 Fax:
More informationMG Architects Kimberley Lane Houston, TX For more information contact: Ryan Hartsell Partner
For more information contact: Partner rhartsell@oxfordcres.com Phone: (713) 647-6400 2900 Weslayan St., Suite 480 Houston, TX 77027 www.oxfordcres.com Table of Contents Real Estate Investment Details...
More informationTHE APPRAISAL OF REAL ESTATE 3 RD CANADIAN EDITION BUSI 330
THE APPRAISAL OF REAL ESTATE 3 RD CANADIAN EDITION BUSI 330 REVIEW NOTES by CHUCK DUNN CHAPTER 20 Copyright 2010 by the Real Estate Division and Chuck Dunn. All rights reserved CHAPTER 20 - THE INCOME
More informationLessor Example Performance Obligation Approach
Lessor Example Performance Obligation Approach **Disclaimer The exposure draft received nearly 700 letters of comment through the comment period ended December 15, 2010. There is some expectation that
More informationPublic Storage Reports Results for the Quarter Ended March 31, 2017
News Release Public Storage 701 Western Avenue Glendale, CA 91201-2349 www.publicstorage.com For Release Immediately Date April 26, 2017 Contact Clemente Teng (818) 244-8080, Ext. 1141 Public Storage Reports
More information$450,000 $63,425 $39, % PURCHASE PRICE NET OPERATING INCOME ANNUAL CASH FLOW CAP RATE
Executive Summary Key Property Metrics $450,000 $63,425 $39,143 14.1% PURCHASE PRICE NET OPERATING INCOME ANNUAL CASH FLOW CAP RATE $70,000 $60,000 $50,000 $40,000 $30,000 Annual Cash Flow Repairs, 8%
More informationBUSI 330 Suggested Answers to Review and Discussion Questions: Lesson 10
BUSI 330 Suggested Answers to Review and Discussion Questions: Lesson 10 1. The client should give you a copy of their income and expense statements for the last 3 years showing their rental income by
More informationPreface Table of Contents Chapter 1: Overview of the Liquor Store Industry... 13
Preface.................................................................... 3 Who Should Read This Book 3 Organization and Content 4 Chapter 4: Liquor Store Business Valuation 4 Acknowledgments 5 Contacting
More informationChapter 8. How much would you pay today for... The Income Approach to Appraisal
How much would you pay today for... Chapter 8 One hundred dollars paid with certainty each year for five years, starting one year from now. Why would you pay less than $500 Valuation Using the Income Approach
More informationReal Estate Appraisal
Market Value Chapter 17 Real Estate Appraisal This presentation includes materials from Ling and Archer, 4 th edition, Real Estate Principles The highest price a property will bring if: Payment is made
More informationFrom Page 1 of form:
The following instructions are provided to aid you in filling out the Income and Expense Questionnaire form for Office, Retail and Industrial properties. If you have any questions, please call our office
More informationReal Estate & REIT Modeling: Quiz Questions Module 1 Accounting, Overview & Key Metrics
Real Estate & REIT Modeling: Quiz Questions Module 1 Accounting, Overview & Key Metrics 1. How are REITs different from normal companies? a. Unlike normal companies, REITs are not required to pay income
More informationABSOLUTE AUCTION Maple Grove Mobile Home Park
ABSOLUTE AUCTION Maple Grove Mobile Home Park For more information contact: Commercial Broker Associate ccraig@ccim.net Jim Halfhill, Sr. Halfhill Auction Group Principal Auctioneer +18593385764 halfhill@rhr.com
More information2016 Level I Tutorials. Income Approach to Value
2016 Level I Tutorials Income Approach to Value 1 The income approach is based on the principal that the value of an investment property reflects the quality and quantity of the income it is expected to
More informationDania Beach Multi Family 126 NW 8th Ave Dania Beach, FL 33004
Dania Beach Multi Family Turn key apartment bulling with full management services in place. Completely renovated property with impact windows and newer roof. 8.07% Cash on Cash return with 30% down payment.
More informationChapter 8. The Income Approach to Appraisal. Two Approaches to Income Valuation. How Does DCF Differ from Direct Cap? Rationale:
The Income Approach to Appraisal Chapter 8 Valuation Using the Income Approach Rationale: Value of a property is the present value of its anticipated income. Often called income capitalization Capitalize:
More informationChapter 8. How much would you pay today for... The Income Approach to Appraisal
How much would you pay today for... Chapter 8 One hundred dollars paid with certainty each year for five years, starting one year from now. Why would you pay less than $500 Valuation Using the Income Approach
More informationVIP/Cumberland Farms Scarborough 441 Payne Rd, Scarborough, ME 04074
441 Payne Rd, Scarborough, ME 04074 John Gendron, CCIM 2079398500 johnrgendron@gmail.com REAL ESTATE INVESTMENT DETAILS Analysis Analysis Date August 2016 Property Property Property Address Year Built
More informationPS Business Parks, Inc. Reports Results for the Quarter Ended March 31, 2017
News Release PS Business Parks, Inc. 701 Western Avenue Glendale, CA 91201-2349 psbusinessparks.com For Release: Immediately Date: April 25, 2017 Contact: Edward A. Stokx (818) 244-8080, Ext. 1649 PS Business
More informationFrom Page 1 of form:
The following instructions are provided to aid you in filling out the Income and Expense Questionnaire form for Multi-Residential properties. If you have any questions, please call our office at 1-800-380-7775.
More informationTenant: Law Firm 4 NAICS: Primary Industry: Offices of lawyers
Tenant: Law Firm 4 NAICS: 541110 Primary Industry: Offices of lawyers Date: 05.25.17 Table of Contents Law Firm 4 132 Main Street TABLE OF CONTENTS TIL Score Executive Summary Tenant Score Information
More informationFully Stabilized 24-Unit Property at 11% Cap Rate!
Fully Stabilized 24-Unit Property at 11% Cap Rate! To Insert a Picture here, click inside this box with your mouse, then click on "INSERT PIC" button on the right and select the picture 24 Units consisting
More informationFinancial Bootcamp SAMPLE. Participant Guide
Financial Bootcamp Participant Guide March 2018 LIMITS OF LIABILITY AND DISCLAIMER OF WARRANTY 2017 by the National Apartment Association, 4300 Wilson Boulevard Suite 400 Arlington, VA 22203. All rights
More information60-HR FL Real Estate Broker Post-Licensing Learning Objectives by Lesson
Lesson 1: Starting a Real Estate Office SECTION 1: BROKERAGE OFFICE ESSENTIALS Recall the characteristics of business entities that may register as a real estate brokerage and the rules involved to operate
More informationMEADOW PARK SENIOR HOUSING ASSOCIATION / MEADOW PARK SENIOR APARTMENTS HUD PROJECT NO. 127 EE021. Financial Statements and Single Audit Reports
MEADOW PARK SENIOR HOUSING ASSOCIATION / MEADOW PARK SENIOR APARTMENTS HUD PROJECT NO. 127 EE021 Financial Statements and Single Audit Reports Table of Contents Independent Auditor s Report 1 2 Financial
More informationSouth Park Apartment Complex
For more information contact: Founder & Principal andy@vreg.co Brian Suite Director of Operations Broker (808)927-1202 brian@vreg.co Six Unit Apartment Building 6,250 sf Lot Less Than 15 Minutes From Downtown
More informationLEASE FINANCING. Types of Leases
LEASE FINANCING Types of Leases Operating Leases Financial Leases or Capital Leases Sale-and-Leaseback Arrangements Combination Leases Synthetic Leases Operating Leases Payments include maintenance and
More informationINDEPENDENT AUDITORS REPORT 1. Balance Sheets 2. Statements of Operations 3. Statements of Changes in Partners Capital 4. Statements of Cash Flows 5
Sunrise Carlisle, LP Financial Statements as of and for the Years Ended December 31, 2016 and 2015, Other Financial Information, and Independent Auditors Reports TABLE OF CONTENTS INDEPENDENT AUDITORS
More informationFinancial Bootcamp. Facilitator Guide Instructions for Half Day Workshop Delivery
Financial Bootcamp Facilitator Guide Instructions for Half Day Workshop Delivery September 2017 2017 National Apartment Association 2 Workshop Information Workshop Length: This workshop is designed to
More informationCITY OF JACKSONVILLE, FLORIDA
PROPERTY APPRAISER DEPARTMENT VISION: To earn the public s trust. DEPARTMENT MISSION: We will: Produce a fair, equitable and accurate tax roll as required by law. Focus on our customers the taxpayers.
More informationChapter 1 Economics of Net Leases and Sale-Leasebacks
Chapter 1 Economics of Net Leases and Sale-Leasebacks 1:1 What Is a Net Lease? 1:2 Types of Net Leases 1:2.1 Bond Lease 1:2.2 Absolute Net Lease 1:2.3 Triple Net Lease 1:2.4 Double Net Lease 1:2.5 The
More informationAchieved record annual revenues of $110.0 million for 2018, representing an increase of 5.8%
Clipper Realty Inc. Announces Fourth Quarter and Full-Year 2018 Results Reports Record Annual Revenues, Record Annual Income from Operations and Record Quarterly and Annual Adjusted Funds from Operations
More informationClassify and describe basic forms of real estate investments.
LOS 43.a 2017 CFA Exam SS 15 Classify and describe basic forms of real estate investments. Card 1 of 52 LOS 43.a There are four basic forms of real estate investment; private equity (direct ownership),
More informationHollywood Industrial Property 5770 Funston St Hollywood, FL 33023
Hollywood Industrial Property Amazing investment opportunity 34 tenants, with 33,580 leasable square footage 9.54% Actual Capitalization rate Automotive uses allowed Sponsored By: JOHN DEMARCO, ACP 954-678-8733
More informationGreystone Arms San Juan Road, San Diego, CA Brendan Erickson, BTE. Vice President
, Upgraded Units with Large Square Footage & Contemporary Finishes Throughout Coveted Mission Hills Heritage Park Location Near Recreation, Restaurants, and Shopping New Appliances and Hardwood Floors
More informationMOBILEHOME PARK RENT STABILIZATION PROGRAM
CITY OF YUCAIPA MOBILEHOME PARK RENT STABILIZATION PROGRAM Application By Park Owner to the Yucaipa Mobilehome Rent Review Commission For Rent Increase Based on Maintenance of Net Operating Income/Fair
More information$450,000 $63,425 $33, % PURCHASE PRICE NET OPERATING INCOME ANNUAL CASH FLOW CAP RATE
Executive Summary Key Property Metrics $450,000 $63,425 $33,431 14.1% PURCHASE PRICE NET OPERATING INCOME ANNUAL CASH FLOW CAP RATE $60,000 $50,000 $40,000 $30,000 Annual Cash Flow Maintenance & Repairs,
More informationASSESSMENT METHODOLOGY
2018 ASSESSMENT METHODOLOGY MULTI-RESIDENTIAL MANUFACTURED HOME PARK A summary of the methods used by the City of Edmonton in determining the value of multi-residential manufactured home park land properties
More informationUNDERSTANDING THE DEVELOPMENT PRO FORMA
UNDERSTANDING THE DEVELOPMENT PRO FORMA March 16, 2017 ULI Urban Leadership Program Dr. Steven Webber Ryerson University/Urbanformation Consulting Pro forma Financial analysis based on Revenues Costs Return
More informationSunrise Stratford, LP
Sunrise Stratford, LP Financial Statements as of and for the Years Ended December 31, 2017 and 2016, Other Financial Information, and Independent Auditors Reports TABLE OF CONTENTS INDEPENDENT AUDITORS
More informationMECKLENBURG MANOR APARTMENTSs A 51 UNIT MULTI-FAMILY INVESTMENT OPPORTUNITY 719 EAST FERRELL STREET, SOUTH HILL, VIRGINIA 23970
:: A CBRE RICHMOND MULTI-HOUSING OPPORTUNITY MECKLENBURG MANOR APARTMENTSs A 51 UNIT MULTI-FAMILY INVESTMENT OPPORTUNITY 719 EAST FERRELL STREET, SOUTH HILL, VIRGINIA 23970 Part of the CBRE affiliate network
More informationReal Estate Investment Analysis
Real Estate Investment Analysis July 6, 2018 SJ Fowler Real estate 4574 N 1st Ave #0 Tucson AZ 85718 David Walsh 520-591-1736 dw.sjfowler@gmail.com Property Photos, Main Property Photo Property Photos,
More informationFLORIDA BROKER PRELICENSE (FREC II) (V2)
FLORIDA BROKER PRELICENSE (FREC II) (V2) TIME CONTENT OUTLINE LEARNING OBJECTIVES -- After this segment, the Licensing 7 hours 45 mins. License Law and Rules 1 explain the purpose of the license law describe
More informationMRI Commercial Management For Web Operational Training Guide Version 4.2
MRI Commercial Management For Web Operational Training Guide Version 4.2 2012 MRI Software LLC. Any unauthorized use or reproduction of this document is strictly prohibited. All Rights Reserved. 2012 MRI
More informationChapter 09. Chapter 9 Learning Objectives. Housing Alternatives by life stage. The Decision: Factors and Finances
Chapter 09 The Decision: Factors and Finances McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. 9-1 Chapter 9 Learning Objectives 1. Evaluate available housing alternatives
More informationNews Release. PS Business Parks, Inc. 701 Western Avenue P.O. Box Glendale, CA
News Release PS Business Parks, Inc. 701 Western Avenue P.O. Box 25050 Glendale, CA 91221-5050 www.psbusinessparks.com For Release: Immediately Date: May 3, 2001 Contact: Mr. Jack Corrigan (818) 244-8080,
More informationPS Business Parks, Inc. Reports Results for the Quarter Ended September 30, 2018
News Release PS Business Parks, Inc. 701 Western Avenue Glendale, CA 91201-2349 psbusinessparks.com For Release: Immediately Date: October 23, 2018 Contact: Jeff Hedges (818) 244-8080, Ext. 1649 PS Business
More informationEVERGREEN COURT SENIOR HOUSING ASSOCIATION / EVERGREEN COURT SENIOR APARTMENTS HUD PROJECT NO. 127 EE013
EVERGREEN COURT SENIOR HOUSING ASSOCIATION / EVERGREEN COURT SENIOR APARTMENTS HUD PROJECT NO. 127 EE013 Financial Statements and Single Audit Reports Table of Contents Independent Auditor s Report 1 2
More informationGarden Fourplex PROPERTY HIGHLIGHTS. Prepared By Garden Ave San Jose, CA 95111
2795 Garden Ave San Jose, CA 95111 PROPERTY HIGHLIGHTS Offered at $1,575,000 4.7% Cap rate; 14.7 GRM NOT SUBJECT TO RENT CONTROL! Large, fully remodeled Units Four 2 bed / 1 bath units, ~920 SF each 2
More informationThe Neponset 400 Neponset Avenue Boston, MA 02122
Location, Location, Location Approx 210,000 per day traffic count jfitzgerald@remax.net Phone: (617) 268-5100 Fax: (617) 268-5160 738 E Broadway Boston, MA 02127 www.baystateliving.com Table of Contents
More informationMAGNOLIA POINT APARTMENTS
MAGNOLIA POINT APARTMENTS 4901 Tanner Street Moss Point, MS 39532 For more information contact: B-13469 CLICK HERE FOR DRONE VIDEO. $800.000.00 60 Duplexes, One Office warehouse, for around $13,333 per
More informationChapter 7. Objective1 Assess Costs and Benefits of Renting. Chapter Objectives
Chapter 7 Selecting and Financing Housing McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Selecting and Financing Housing Chapter Objectives 1. Assess costs and
More informationFor Internal Use Only. Understanding Reports. esite
For Internal Use Only Understanding Reports esite Document esite Understanding esite Reports September 2011 Software esite Published September 2011 Copyright AMSI makes no warranty of any kind with respect
More informationBroker. Sales Comparison, Cost Depreciation and Income Approaches. Chapter 7. Copyright Gold Coast Schools 1
Broker Chapter 7 Sales Comparison, Cost Depreciation and Income Approaches 1 Learning Objectives Describe the assumptions underlying the sales comparison approach Calculate the various adjustments necessary
More informationQuarterly Owner s Financial Certification Reporting Instructions
Quarterly Owner s Financial Certification Reporting Instructions Quarterly Owner Financial Certification Reports are due by the 15 th business day of April (for the Quarter Jan Mar), July (for the Quarter
More informationClipper Realty Inc. Announces Third Quarter 2018 Results Reports Record Revenues, Income From Operations and Adjusted Funds From Operations
Clipper Realty Inc. Announces Third Quarter 2018 Results Reports Record Revenues, Income From Operations and Adjusted Funds From Operations NEW YORK, November 1, 2018 /Business Wire/ -- Clipper Realty
More informationDefinitions. CPI is a lease in which base rent is adjusted based on changes in a consumer price index.
Annualized Rental Income is rental revenue under our leases on Operating Properties on a straight-line basis, which includes the effect of rent escalations and any tenant concessions, such as free rent,
More informationGASBs Presented by: William Blend, CPA, CFE
GASBs 87-89 Presented by: William Blend, CPA, CFE Leases: Statement 87 Effective Date and General Implementation Effective for Florida fiscal year end 2021. Earlier application is encouraged. Leases should
More informationReal Estate Modelling This course can also be presented in-house for your company or via live on-line webinar
Real Estate Modelling This course can also be presented in-house for your company or via live on-line webinar The Banking and Corporate Finance Training Specialist Course Overview Course Methodology This
More information10751 Page PROPERTY HIGHLIGHTS. Prepared By Page Ave Saint Louis, MO Michael Zangara Broker
Ave Saint Louis, MO 63132 PROPERTY HIGHLIGHTS 24 One Br/ One Ba Units Fully Occupied - consistent tenant base Close To Public Transportation and Major Highways Turn Key Investment Property 9% Cap Rate
More informationImpact of lease accounting changes to corporate real estate
Impact of lease accounting changes to corporate real estate Overview In February 2016, the Financial Accounting Standards Board (FASB) issued its long-awaited revision to lease accounting Accounting Standards
More informationRisk Management Insights
Risk Management Insights Appraisal Review Part II: Income Capitalization Approach George Mann, Managing Director and Chief Appraiser, Collateral Evaluation Services, Inc.and Nikki Griffith, MAI, CCIM,
More informationGlendale, California - PS Business Parks, Inc. (AMEX: PSB), reported operating results for the fourth quarter and the year ending December 31, 2001.
News Release PS Business Parks, Inc. 701 Western Avenue P.O. Box 25050 Glendale, CA 91221-5050 www.psbusinessparks.com For Release: Immediately Date: January 30, 2002 Contact: Mr. Jack Corrigan (818) 244-8080,
More informationPS Business Parks, Inc. Reports Results for the Quarter and Year Ended December 31, 2018
News Release PS Business Parks, Inc. 701 Western Avenue Glendale, CA 91201-2349 psbusinessparks.com For Release: Immediately Date: February 20, 2019 Contact: Jeff Hedges (818) 244-8080, Ext. 1649 PS Business
More informationRaising Your Commercial IQ
Raising Your Commercial IQ Real Estate Investment & Lease Analysis January 2013 0 P age Neil Osborne M.B.A. DL. (604) 988-5518 nosborne@investitsoftware.com Investit Software Inc. Toll free 877-878-1828
More informationCONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS Dundee Real Estate Investment Trust Consolidated Balance Sheets (unaudited) June 30, December 31, (in thousands of dollars) Note 2004 2003 Assets Rental properties 3,4
More informationBUSI 331: Real Estate Investment Analysis and Advanced Income Appraisal
BUSI 331: Real Estate Investment Analysis and Advanced Income Appraisal PURPOSE AND SCOPE The Real Estate Investment Analysis and Advanced Income Appraisal course BUSI 331 is intended to build upon the
More informationBroker. Investment Real Estate. Chapter 15. Copyright Gold Coast Schools 1
Broker Chapter 15 Investment Real Estate Copyright Gold Coast Schools 1 Learning Objectives Matching an investor with the right property Evaluating the sites and improvements of income properties Determining
More informationSales Associate Course
Sales Associate Course Chapter Sixteen Appraisal 1 2 Appraiser Specific amount Impartial (non biased) Defendable Estimate (Opinion) of value Fee based on time and difficulty Must follow Uniform Standards
More informationMABRY MANOR - PROPERTY REPORT NOVEMBER Mabry Manor Tampa, FL
MABRY MANOR - PROPERTY REPORT NOVEMBER 2016 Mabry Manor Tampa, FL RADCO Newport Villas, LLLP Presented December 2016 Letter from Norman Radow Dear Investor, I am pleased to provide you with the November
More informationAuditing PP&E, Including Leases
Auditing PP&E, Including Leases Learning Objectives Discuss typical audit risks and special considerations. Tailor an audit plan to assessed audit risk. Explain key controls related to PP&E. Describe lease
More informationMidstate Office Park
For more information contact: Managing Director ejordan@northeastpcg.com Drew Kirkland Licensed Associate (857) 990-6802 dkirkland@northeastpcg.com Francis Saenz Investment Associate (857) 990-6803 fsaenz@northeastpcg.com
More informationChapter 18. Investors have different required yields Different risk assessment Different opportunity cost of equity
Decision Making in Real Estate Centers Around Valuation Chapter 18 Investment Decisions: Ratios We examined the concept of market value in Chapters 7 & 8 As noted, professional RE appraisers are often
More informationHow to Read a Real Estate Appraisal Report
How to Read a Real Estate Appraisal Report Much of the private, corporate and public wealth of the world consists of real estate. The magnitude of this fundamental resource creates a need for informed
More informationDemystifying Rental Underwriting. August 15, 2017
Demystifying Rental Underwriting August 15, 2017 Welcome & Introductions Delivered by Steve Lathom, TDA Consulting www.tdainc.org slathom@tdainc.org 517-203-4130 Session Objectives Regulatory issues driving
More informationNew leases standard ASC 842 Lessee - operating leases. Itai Gotlieb, Partner, Professional Practice July 2017
ASC 842 Lessee - operating leases Itai Gotlieb, Partner, Professional Practice July 2017 Overview Under Accounting Standards Codification (ASC) 842, Leases, lessees recognize assets and liabilities for
More informationCopyright 2009 The Learning House, Inc. Fixed and Intangible Assets Page 1 of 13
Copyright 2009 The Learning House, Inc. Fixed and Intangible Assets Page 1 of 13 Introduction This lesson focuses on the long-term assets used to operate a company. These assets can be grouped into fixed
More informationNON-GAAP FINANCIAL MEASURES
NON-GAAP FINANCIAL MEASURES Welltower Inc. (HCN) believes that revenues, net operating income from continuing operations (NOICO), net income and net income attributable to common stockholders (NICS), as
More informationTypical Valuation Approaches and How to Deal With Them
Typical Valuation Approaches and How to Deal With Them January, 2018 Anthony F. DellaPelle, Esq., CRE Shareholder, McKirdy, Riskin, Olson & DellaPelle, P.C. Morristown, New Jersey Christian F. Torgrimson,
More informationUNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended
More informationReal Estate Investment Analysis
Real Estate Investment Analysis September 17, 2018 SJ Fowler Real estate 474 N 1st Ave #100 Tucson AZ 8718 David Walsh 20-91-1736 dw.sjfowler@gmail.com Property Photos, Main Property Photo Property Photos,
More informationFrom Page 1 of form:
The following instructions are provided to aid you in filling out the Income and Expense Questionnaire form for Parkade properties. If you have any questions, please call our office at 1-800-380-7775.
More informationPS Business Parks, Inc. Reports Results for the Quarter Ended March 31, 2018
News Release PS Business Parks, Inc. 701 Western Avenue Glendale, CA 91201-2349 psbusinessparks.com For Release: Immediately Date: April 24, 2018 Contact: Maria R. Hawthorne (818) 244-8080, Ext. 1370 PS
More informationMETHODOLOGY GUIDE VALUING LONG-TERM CARE HOMES IN ONTARIO. Valuation Date: January 1, 2016
METHODOLOGY GUIDE VALUING LONG-TERM CARE HOMES IN ONTARIO Valuation Date: January 1, 2016 AUGUST 2016 August 22, 2016 The Municipal Property Assessment Corporation (MPAC) is responsible for accurately
More information