I will be submitting an additional article regarding cap rates and GRM( Gross Rent Multipliers). These are often the first things investors look at when considering an investment in commercial property. Part of the problem is that many brokers and agents are not sure how to compute these numbers and often post Cap rates and GRM's that are incorrect. Be sure to do your homework and determine on your own what the correct numbers are. As an example, my company is about to close escrow on a 5 unit building. It was listed as a 3 cap. In reality, once you factored in everything: market rents due to the 2 vacanies, rent increase, etc, the building was a 7 cap. I will take that anyday of the week. Plus I paid undermarket because the building was advertised as a "3" cap. Just do your homework. There are plenty of deals out there to choose from. Be picky and find the right one!
Thanks for reading.
Justin Paperny
www.justinpaperny.com
818-424-2220
1 comment:
Hello. This post is likeable, and your blog is very interesting, congratulations :-). I will add in my blogroll =). If possible gives a last there on my blog, it is about the TV de LCD, I hope you enjoy. The address is http://tv-lcd.blogspot.com. A hug.
Post a Comment