Commercial Property

Type your answer here... 26910

Espitalier Noel,Harel families,Rawat and Rivalland etc...

For retail space core and shell, a good construction cost estimate is $100 per square foot. There are, however, numerous factors involved when it comes to construction.

The Home Mortgage Disclosure Act (HMDA), enacted by Congress in 1975 and implemented by the Federal Reserve Board's Regulation C, requires lending institutions to report public loan information. In 2012, there were 18.7 million HMDA records from 7,400 financial institutions.

61

Gas stations vary in value depending on a number of factors. Those factors include size, visibility (Frontage), ease of access, traffic flow and even things like parking. The books should be opened so the person buying can see profit or loss. It is best to have it appraised by an knowledgeable expert.

600 square yards equal approximately 500 square metres. (1 yd2 = 0.83612736 m2)

85%

The capitalization rate is dependent on what investors want to earn on their money when investing in commercial real estate. It is somewhat tied to the prevailing interest rates as investors can choose other choices if real estate does not provide a sufficient return.

You compute the prevailing rate if you divide the price a property is being offered at by the NOI (Bet Operating Income). Each building could vary but there should be a level that is common for most buildings that are in the same market (type, condition and location). Many times the NOI can be misstated so check the details to see what has been assumed when the NOI was computed. Garbage in, garbage out otherwise.

Knowing how to find a cap rate is easy once you know exactly what one really is. You probably have heard of a PE ratio in stocks. A PE ratio of 18 means the stock is selling for 18 times earnings. With earnings per share of 2.00, the stock would be selling for 2.00 x 18 $36 per share.

Well, a cap rate is the inverse of a PE ratio and it is used in real estate instead of the stock market.

For example, lets look at a PE ratio of 8. Earnings per share 1.00. The stock would sell for 1.00 x 8 $8 per share.

Now real estate, same 8 multiple. The inverse of 8 1/8 12.5% (cap rate). Annual earnings per square foot 1.00. Since a cap rate is the inverse of a PE ratio, you divide instead of multiply. 1.00 / .125 $8 per square foot of market value.

So, a cap rate expresses the relationship between earnings (net income in real estate) and market value. In real estate text books, cap rates are expressed with the letter R. Net Income is the letter I and market value is the letter V. Using simple algebra, there are three ways to express this relationship:

V I / R

I V x R

R I / V

Ooops... that last formula tells you where to find capitalization rates (the original question).

Simple. Find some sales of properties. Find out what their net income was at the time of sale. Divide that income by the sale price. That gives you a cap rate. Do that with 5 sales and you will have a range of cap rates. Give the greatest weight to the sales which are the most comparable to the subject property being appraised and you will have a weighted average cap rate you can use to "capitalize" (divide) your subject's pro forma net income (over the next 12 months) into a current market value.

One last comment -- a bit technical -- but if you don't know the net income of the sales you can take each sale's asking rent, less observed vacancy at the time of sale and estimate the cap rate with the following formula. (Note: you will need to know the typical operating expense ratio (OER) for that property type of that age. Brokers and property owners can tell you this. For example, many multifamily properties have OERs in the 35 to 40% range -- depending on age, condition, location, etc.)

Formulas:

First calculate Effective Gross Inc Multiplier (EGIM) Sale Price / (Gross Rent Less Vacancy) ... then you can calculate the Cap rate (1 - OER) / EGIM

Let's put some numbers on it to make sense:

Gross Rent 1.00

Vacancy 10%

Eff Gross Inc 0.90

Sale Price 7.00

EGIM 7.00 / 0.90 7.7778

OER is assumed to be 38% based on local info from brokers.

Overall Cap Rate (OAR) (1 - .38) / 7.7778 7.97%

Now let's apply the cap rate to prove it works:

Value Net Inc / OAR (V I / R)

Effective Gross 0.90

Operating Expenses 38% of that, or 0.342

Net Inc .90 - .34 .56

Value .56 / 7.97% 7.00 (Look back at the beginning Sale Price... 7.00)

The size of a city lot varies greatly from city to city. For instance some cities use a parameter of 50 feet of frontage and 150 feet in length. That would make square footage of that city lot of 7,500 square feet.

When you finance or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car. Talking with Your Creditor

It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying. Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report. Seizing the Car

In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance. But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace. Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property. A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation. Selling the Car

Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold. In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale). In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession. The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable. Paying the Deficiency

A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract. Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense. If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

Lease hold premises is one taken on rental basis form other person based upon an agreement and for a period of time - say 5 years. It is not he asset of user (Lessee). Only a right to use the asset passes to the lessee and ownership stays with the original owner (Lessor). Free hold premises is free of any leasing agreement or contract. The owner and user is the same person, and the right to use and ownership lies with one person only i.e. the owner. Presentation of both the above in financial statements is different. Only owner can claim depreciation on the leased premises (being the owner) and lessee can claim the lease rent paid by him for income tax purpose.

If you have a garage -- safely remove the back wall for access. You may need a structural engineer to determine proper supports for the wall.

who signs a annuity suitability questionaire

Buying an apartment complex is a long, sometimes complicated, process. It's important for you to gather as much information as you can before you make the decision to buy. Applying for a mortgage to finance an apartment complex is not at all similar to applying for a home mortgage. Apartment complexes with four or more units are commercial properties, and loans for them have different underwriting rules.

Rules are :

1. Decide if you want to purchase a residential apartment complex of a mixed-use building.

2.Gather information about the building you would like to buy.

3.Talk to other commercial real estate investors.

4.Talk to local real estate agents.

5. Consider your end goal-the reason you want to buy the property.

6.Have the building inspected by a professional who has experience inspecting commercial

buildings.

7. Assemble the documents you will need for the loan application.

To have a look on recent listing or real estate i would say check classified sites salequick .com or craigslist .. both are best

Its not mandatory to need a real estate license to buy or own an apartment building.