From multi-story office buildings to multi-family apartments, industrial warehouses, retail stores, strip malls; high occupancy rates continue to drive more construction. There is always another project in demand right around the corner.
Whether building from scratch, redeveloping for best available use, or just looking for great value in positive cash flows starting day one, we provide detailed strategies, analyses, and comparisons, making sure investors receive the highest ROI, bottom line.
WHAT TO LOOK FOR
CAPITALIZATION RATES
The cap rate determines current Net Operating Income in relation to the value of the building. It's difficult to know how high a percentage can be achieved without first understanding the operational cash flows and expenses. This rate does not take into account the leveraged return on the actual equity invested outright using financing or debt to secure the purchase.
CASH FLOW ANALYSIS
Examine the main revenue streams from the property, looking back at the last 5 or 10 years to determine how much cash comes in the form of rent versus other amenities, as well as what it costs to keep operations running including debt services. We can calculate this for before and after-tax perspectives of each individual investor.
PRO-FORMA CALCULATIONS
Every investment is held under the assumption of increased future earning potential. We help evaluate where rents are headed and possible costs required, giving investors an overview of projected income with an estimate of sale proceeds at a future price and date.
INTERNAL RATE OF RETURN (IRR)
For every investment taken, there is the risk of missing out on a better return elsewhere. Considering variable discount rates for similar projects in the market, it is important to see how the Net Present Value of capital invested is expected to generate a desirable compounded annual growth rate.
MARKETING AND DISPOSITION
While real estate is usually a long-term play, there are times where one needs to sell, or only plans to purchase with a short-term horizon in mind. Whether liquidating assets in a portfolio or reallocating for better opportunities, presenting the investment as a good deal at reversion is just as important as acquiring something in the first place. In addition to recaptured costs, capital gains, and tax-liabilities, we make sure you are covered from start to finish.