A Free Tool to Analyze Commercial Real Estate Deals

Increasing interest rates have had an impact on the real estate market which hasn't been fully factored in yet.
But it's coming.
Many sellers are still looking for 2021 values even though buyers aren't placing the same value on properties now.
And there's math to support how they can afford less (at least if they're arranging financing as part of their capital stack).
In this video I walk through the Debt Service Coverage Ratio (DSCR, or sometimes just DCR) and how the ratio has fundamentally changed the market.
Here are the free DSCR Spreadsheets I mention in the video:
Excel: industrialize....
Google sheets: docs.google.co...
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🙋‍♂️ Chad Griffiths, MBA, SIOR
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[@industrialize]

In the report I mention in the video, they suggest that for every 100 basis point increase in long-term interest rates (ie/ 10 year treasury) there is a corresponding 60 basis point increase in cap rates.

[@shanep.9442]

Very good video Chad, thank you.

[@industrialize]

Thank you Shane!

[@TenantRepGuru]

Your videos are the Go To Source for Commercial Real Estate Chad. Don C.

[@industrialize]

Thanks for the kind words Don! I’ll give you a buzz to book our long over due interview!

[@anthonyrussell4888]

Your channel is a wonderful resource. Bloopers and all.😂

[@industrialize]

Thanks Anthony!

[@anthonyrussell4888]

@@industrialize You're welcome, Chad!:)

[@jasonkocher1498]

Awesome tools!! Thank you

[@industrialize]

Thanks for the comments Jason!

[@warehouseinvestor5036]

send this to oevey seller who still wants last year prices!!!!

[@industrialize]

It's a new and different market, that's for sure.

[@RonaldRohdeLaw]

Next show how seller financing can hit a higher sales price and same CoC Seller Financing How to Do it in 2023
th-cam.com/video/Ym877yng3LE/w-d-xo.html

[@industrialize]

Great idea Ron!
PS here's a fantastic video on how to optimize any real estate investment using one very simple trick:
th-cam.com/video/dQw4w9WgXcQ/w-d-xo.html

[@wannabedal-adx458]

I always thought that mortgage amount, Interest rate, and term determined the interest payment, which would lead to calculating the DSCR. Here you do it backwards. Is that because commercial/industrial RE do things differently than housing RE? Or is this just quick analysis to aid an investor or broker in the search for properties? Thanks and very informative video.

[@industrialize]

Thanks for the comments, yes I’d look at it primarily as a tool to see how values have changes as a result of higher interest rates and the corresponding cap rates required.

[@davidkomaromi2017]

This is gold, very grateful to have stumbled onto your channel. Thanks Chad!

[@industrialize]

Thanks David! Have more videos like this planned as well