Recently made a cross-country move from CA to AL. Left a residential appraisal job for a commercial appraisal job. Thanks for the great video!
9 ปีที่แล้ว +11
I have been employed in commercial real estate since 1991,My Father has been in commercial real estate since 1970,It's a very fun,rewarding,and sometimes competitive business as well. Some deals can take up to year or so to close,Sometimes they never close at all.That's just the nature of the business.It's also one of the most tough businesses to survive in.You have to be willing to accept when a deal falls through. This business is not for everyone.
Great video, I have a potential deal it involves one lazy landlord 4 residential properties and 2 commercial properties all in the same area this is my first deal and I would like to know more about the Cap Method
You've got a lot to learn about using capitalization rates. It depends more on the subject property's income quality, quantity and durability than "cap rates in the area". You are appraising a leased fee interest and not fee simple.
Recently a 1.5 acres lot near a local interstate exchange sold for $1 million. Due in part to a rapid increase in Utica Shale gas wells and workers in this area, and the need for housing, this lot now has a motel being built on it. There is no zoning as such in the area, and the property I own is about 1/4 mile away. My property is residential with buildings including a house and barn, but is 3.2 acres and can be converted to commercial by anyone who seeks to do so, basically the same as the 1.5 acres lot that was sold for $1 million. Generally, 1 acre of land sells for about $40k in this area. My question is: Using the comparison guide to valuation, would the bare land sold for $1 million have any effect in terms of increased value on the property I own, just down the street?
Hey I love your instructional video! You didn’t over talk or try to make it seem more than what it is! I went to your video bcuz I’m trying to see how I can find value in an abandoned 10 unit apt building that’s vacant! How can I determine value?
For vacant buildings, it is best to use sales comparison approach. Although check out the rents in the area to get an idea of the gross rental income. You would have to estimate expenses to estimate NOI.
Good basics however two identical retail properties receiving the same income and next door to each other can have vastly different values. e.g. If tenant in Building A was 'Dodgy furniture seconds ltd' on a 1 year lease and Building B was Subway on a 6 year lease, the difference between these two identical buildings with exactly the same income could be circa $300,000.
How do I challenge an appraisal, if my property appears to be in the top echelon of the area? And with sales comparisons in today's market, or a changing marketing, what timeframe should the sales be? My appraiser used 2013-2016.
I would think it would drive values into the stratosphere. Isn't fracking used to extract natural gas? You drill for oil. But maybe you're a leftist who's against both and just trolling to make a point?
@@ApartmentKing66 But what if the activities that comes with drilling disturbs the residents? then it would not be so desireable. the enviroment would be polluted in different ways
Hey, Using CAP Method. If NOI is $99,000 and CAP rate is 8% what is the value? I am coming up with $123,750 and its listed price is $995,000. What am I doing wrong?
Jigar, just put the decimal in the correct place and the formula gives you $1,237,500. All cap rates are not 8%. They vary dramatically based upon the quantity, quality and durabilty of the income stream.
@@CA2AL Yes. Folks pay 4.75% for WAWA ground leases, mom and op stores often are around 8% and distressed areas can be 15% and up. I used to have a man that collected my rents that had almost all of his teeth and a big knife in his boot but was very successful in getting rent from most tenants.
We include Replacement Cost Method on every deal. If your looking at a deal that on average costs $155.00 psf to build and your purchase price is $78.00 psf, BAM.
Thank you so much for this video! I have a question though. If you’re going to build say a house with the same materials with the subject property, isn’t it supposed to be reproduction method not replacement method?
Recently made a cross-country move from CA to AL. Left a residential appraisal job for a commercial appraisal job. Thanks for the great video!
I have been employed in commercial real estate since 1991,My Father has been in commercial real estate since 1970,It's a very fun,rewarding,and sometimes competitive business as well. Some deals can take up to year or so to close,Sometimes they never close at all.That's just the nature of the business.It's also one of the most tough businesses to survive in.You have to be willing to accept when a deal falls through. This business is not for everyone.
That's why one deal (if bought right) can set you up for life. But its like potato chips (the deal$) you're not going to have just one, right? lol
Great video, I have a potential deal it involves one lazy landlord 4 residential properties and 2 commercial properties all in the same area this is my first deal and I would like to know more about the Cap Method
hey, thanks for the information, I am taking a Realtor's course and sometimes I need a different explanation made simple. I wish you would do more.
Very useful information you shared with us. It is helpful for property buyers as well sellers. This video makes easy to analyse any property price.
You definitely need to do more videos you have the best videos about RE on youtube you can have A huge success! Think about it, Thank you sir!!!
Agree. Sadly his channel is short. Im hoping he's doing well 🤷♀️
Less than 6 minutes, you got the point across. What would you consider a gr8 cap rate?
Thnx for the video it helps me alot
how to calculate asset value of shoplots or land? is there any formula when we only know the price of a property and its monthly cost?
NOI is based on the vacancy rate at the time of purchase. So, an offer for a property with 100% leased should be higher than one with 85%?
You've got a lot to learn about using capitalization rates. It depends more on the subject property's income quality, quantity and durability than "cap rates in the area". You are appraising a leased fee interest and not fee simple.
The area cap rates should be coming from sales of comparable properties so it is a useful valuation metric.
Recently a 1.5 acres lot near a local interstate exchange sold for $1 million. Due in part to a rapid increase in Utica Shale gas wells and workers in this area, and the need for housing, this lot now has a motel being built on it. There is no zoning as such in the area, and the property I own is about 1/4 mile away. My property is residential with buildings including a house and barn, but is 3.2 acres and can be converted to commercial by anyone who seeks to do so, basically the same as the 1.5 acres lot that was sold for $1 million. Generally, 1 acre of land sells for about $40k in this area. My question is: Using the comparison guide to valuation, would the bare land sold for $1 million have any effect in terms of increased value on the property I own, just down the street?
thx, it answers my questions. were you on a ship when filming?
Lol. That got me weak..
Good valuation method for property!
Thanks man, this really helped me with my research!
Excellent explanation...Thanks!
Hey I love your instructional video! You didn’t over talk or try to make it seem more than what it is!
I went to your video bcuz I’m trying to see how I can find value in an abandoned 10 unit apt building that’s vacant! How can I determine value?
For vacant buildings, it is best to use sales comparison approach. Although check out the rents in the area to get an idea of the gross rental income. You would have to estimate expenses to estimate NOI.
How to find a CAP Rate for Denton, NC area.
Can you please explains how to calculate CAP rate or NOI
how do you know what the Cap Rate is in that particular area?
Ask a broker.
Thanks for this information
Very good video, thanks
Good basics however two identical retail properties receiving the same income and next door to each other can have vastly different values. e.g. If tenant in Building A was 'Dodgy furniture seconds ltd' on a 1 year lease and Building B was Subway on a 6 year lease, the difference between these two identical buildings with exactly the same income could be circa $300,000.
How do I challenge an appraisal, if my property appears to be in the top echelon of the area? And with sales comparisons in today's market, or a changing marketing, what timeframe should the sales be? My appraiser used 2013-2016.
Very useful video!
Would having an oil fracking project in your neighborhood reduce the property value?
I would think it would drive values into the stratosphere. Isn't fracking used to extract natural gas? You drill for oil. But maybe you're a leftist who's against both and just trolling to make a point?
@@ApartmentKing66 But what if the activities that comes with drilling disturbs the residents? then it would not be so desireable. the enviroment would be polluted in different ways
So, the appraiser will ask you for the rent roll before they appraise your apartment building?
HOW CAN ONE FIND THE NET OPERATING INCOME?
Good information. Thanks.
Great Video Brother!
Very simple and straightforward! Thanks! =)
Hi
Nice video, what are you doing nowadays? Your channel only has a few videos.
What books do you recommend on the topic of real-estate investing or any sort of investing?
Introduction to Property Valuation....I'm doing my second year in Real Estate and that's the book we use.
What is your Major? What do you mean second year in Real Estate please elaborate
Thanks for Making this!
Hey,
Using CAP Method. If NOI is $99,000 and CAP rate is 8% what is the value? I am coming up with $123,750 and its listed price is $995,000. What am I doing wrong?
8% is 0.08 on the calculation so actual value is $1,237,500
yes that's correct!!!
@@praisemsomi5314 somebody help me figure out value on mine
Looking for value on land with empty building.
Calculate the the average dollar per square ft of your land then compare to other comparisons.
No more videos??
Taxvalue is R300 000 for businessproperty,,for how much do i sell?
Jigar, just put the decimal in the correct place and the formula gives you $1,237,500. All cap rates are not 8%. They vary dramatically based upon the quantity, quality and durabilty of the income stream.
Do you agree with the notion that the higher the cap rate, the crappier the neighborhood?
@@CA2AL Yes. Folks pay 4.75% for WAWA ground leases, mom and op stores often are around 8% and distressed areas can be 15% and up. I used to have a man that collected my rents that had almost all of his teeth and a big knife in his boot but was very successful in getting rent from most tenants.
good video. but it's moving... are you on a boat?
awsome!!! Thank you
We include Replacement Cost Method on every deal. If your looking at a deal that on average costs $155.00 psf to build and your purchase price is $78.00 psf, BAM.
Thank you.
Helpful information guide.
500,000k OR just 500,000 ?
$500k or $500,000 because k means thousand so in actuallity $500,000k would be $500,000,000 or $500 million or...... Half a billion. I love numbers
So $500k
Thank you so much for this video! I have a question though. If you’re going to build say a house with the same materials with the subject property, isn’t it supposed to be reproduction method not replacement method?
Thank you!!
Thank you...
thank you
You’re missing gross rent multiplier
nice
I wonder whatever happened to him he had a good advice
Great to see that Stodoys has new instructions to save my money.
The title of your video is Commercial, but you focused on residential. ????
HI there, how are you? How can I reach you?, I mean I would like to send you an email if you dont mind
How can i find the CAP rate for an area ?