Jason Head’s Post

Should you buy a property or not? With $300M in industrial real estate transacted, these are the 4 steps I use to underwrite a deal in 60 Seconds Being able to quickly assess whether a deal is worth pursuing is crucial. Here’s a step-by-step approach to underwriting a commercial property in under 60 seconds: 1. Add the Purchase Price + Closing Costs - Purchase price - Notary fees - Legal fees - Financing fees - Commissions - Due diligence costs 2. Estimate the Cost to Increase Rents - Renovation costs - Leasing commissions - Capital expenditures (CapEx) 3. Calculate the Stabilized NOI and Exit Value - NOI formula: Gross Income - Operating Expenses = NOI - Exit Value formula: Stabilized NOI ÷ Cap Rate = Exit Value 4. Put it All Together: The Equation Profit equation: Exit Value - (Purchase Price + Cost to Increase Rents) = Profit Example: Purchase Price: $10M Cost to Increase Rents: $500K Stabilized NOI: $600K Cap Rate: 6.5% Potential profit: ($600K ÷ 0.065) - $10.5M = -$1.27M In this example, you’d actually be losing $1.27 million on the deal. So I know right away it’s not worth pursuing this deal any further. No need to extensively underwrite a deal and include financing assumptions in your analysis when the numbers don't work to begin with. Note:  You shouldn’t purchase a property based on these numbers alone. This is just a quick way to see if a deal is good enough to invest the time to properly underwrite it. This doesn’t take into account financing or refinancing. Follow me to see my upcoming post on financing. Enjoy this? ♻️ Repost it to your network and follow Michael Bucci for more.

UNDERSTANDING THE TERMS AND TERMINOLOGIES USED IN REAL ESTATE (PART 1) • CONTINGENCIES A Contingency in real estate means a clause in the agreement specifying an obligation only if the specified obligation is met, the contrast becomes legally binding. In contingencies, the counter offer and the offer is very important. Contingent means "dependent on or conditioned by something else". In real estate, it means that the buyer and seller have agreed to the terms of a purchase and sale agreement, but only if certain conditions are met. PURPOSE OF CONTINGENCY Contingencies are a safety net for buyers, allowing them to withdraw from the deal if unexpected issues arise. They protect all of the parties involved in a real estate contract. EXAMPLES OF CONTINGENCIES Contingencies can include: 👉The buyer securing financing 👉The home passing an inspection 👉The buyer selling their current home 👉The property having a clear title WHAT HAPPENS IF CONTINGENCIES AREN'T MET? If the contingencies aren't met, the buyer is free to walk away and the house would typically go back on the market. See you in the next class. 👩🏻🏫 SEEDUFY-WEALTH REAL ESTATE RC:7133794 OUR SERVICES INCLUDE: 👉 Land Buying 👉 House Buying 👉 Property Renting 👉 Property Sales 👉 Property Development 👉 Property Management 👉 Property Renovation 👉 Valuation (Know the worth of your property) CONTACT US TODAY!!! Visit our website to request for a consultation. 🌐 Https://SeedufyWealth.com 📩 Email: Seedufy@SeedufyWealth.com

These are 2 creative ways I would use to purchase a property🧐 There is so much to property and allot of different ways to make it work… Here are a couple options to keep in mind when you are looking for your next project; Assisted Sale This is where you agree to purchase a property at a certain price with the landlord. Once that price is agreed, you fund the renovation of the property, and once it is sold, you keep the difference between the sale price and the price agreed upon with the landlord. 2. Purchase Lease Option This strategy is more applicable to HMO’s and SA units. You agree to rent the property from the landlord for 3 -5 years with the option to buy after that period. At the end of the lease, you purchase the property for the agreed value (the idea is that you get a substantial discount due to the capital appreciation + you would have made profit off subletting it) Have you considered these before? #property #realestate #investing #investor

Are You Leaving Money on the Table Without a Leasing Plan? 💸 Many owners think a leasing plan is simply putting up a "for lease" sign and hoping for the best. But the real value comes from curating the perfect tenant mix and leveraging local data to attract strong businesses. In this week's Mark Minute, I cover what to include in your leasing plan and how it can help you maximize the value of your property: https://lnkd.in/gZXNxgUN #realestate #commercialrealestate #economy #business #investing #markets

Real estate note buying is an interesting way to make money. Here is an introduction and 5 reasons for you to consider this

[Leasing vs. Buying: What's Best?] When it comes to real estate, the decision between leasing and buying is crucial. This post will delve into the pros and cons of each option, . . . https://lnkd.in/dkdUxEtK

For leasehold flat owners, the decision to release equity can be particularly nuanced due to the characteristics of leasehold properties ⌛ read more from Fraser Allen on our website https://lnkd.in/e8wSCwgE Fraser Allen Estate Management

Worried your next real estate deal won't make a profit? Use this: The 70% Rule: Take the After Repair Value. And multiply it by 70%. Then subtract the estimated rehab costs from that number. This will give you the Maximum Allowable Offer. A great way to make sure you are not overpaying for a propery. Try this on your next deal analysis. Any questions?

When business owners are tasked with finding a space to run operations, it is wise to consider purchasing versus leasing. 💵🏢 Check out this article to learn why. If purchasing is the right choice for you, our team at www.titlelaw.com can help close the deal. #commercialrealestate #titleinsurance #GArealestate #escrowservices

When business owners are tasked with finding a space to run operations, it is wise to consider purchasing versus leasing. 💵🏢 Check out this article to learn why. If purchasing is the right choice for you, our team at www.titlelaw.com can help close the deal. #commercialrealestate #titleinsurance #GArealestate #escrowservices