Whether you’re a new real estate investor or the CEO of a multi-billion dollar REIT, the answer is the same: All good investment decisions are based on good information. Buyers of income property are surrounded by real estate brokers, property owners and a whole cadre of people involved in the investment process, each with their […]

Following is a punch list of considerations when selecting a real estate broker:

The prospective real estate broker should be familiar with and have had successful experience with the subject type of real estate.
The prospective real estate broker should be familiar with and have had successful experience with the geographical area where the subject real estate […]

The capitalization rate is the truest financial methodology for determining the value of an income property. It measures operational yield, which means that
debt service, depreciation, nonrecurring income or expenses, and any other numbers that affect the true operating income and expenses of an income property
are not included when computing the capitalization rate. This […]

An appraisal is an indication, nothing more. Appraisals do not include negotiating skills, motivation (buyer or seller), terms of the sale, or market potentials (up or down).
Appraisals of income property are based on three considerations: (1) comparable sales, (2) replacement costs, and (3) capitalization rate. Some of an appraisal’s weaknesses in each area are:
Comparable Sales: […]