If only we would fix the present mark-to-market fair value accounting (FVA) standard, than everything would fall into place, and our economic problems would disappear. That’s the position many executives, associations, and companies are taking concerning FVA. What is mark-to-market FVA? It takes the current market value of an asset and adjusts it accordingly on […]

The scenario: An income producing property grosses $60,000 per year, and half is derived from a retail sales store, the other half from an upstairs nightly rental. The retail store is under a lease and the two properties cannot be sold separately. The sales shop tenant pays the utilities; the nightly rental does not.
The solution: […]

NetGain provides national cap rate recommendations via its Nation Income Property Index (NIPI). There are times when local markets exhibit numbers that exceed the recommended rate. The foundations for NIPI are predicated on avoiding negative spread, the economic outlook (using the Consumer Confidence Index), and the current unemployment rate. Those components are factored into a […]

The scenario: A small group of partners has been assembled to buy and operate a retail strip mall. The lead investor is looking for a property that will generate 20% cash-on-cash earnings and does not want to go below 18%, but sellers’ prices seem unrealistic compared to the real NOI.
The reality: The two main characteristics […]