{"id":1065,"date":"2007-02-23T09:41:08","date_gmt":"2007-02-23T16:41:08","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1065"},"modified":"2007-02-23T09:49:04","modified_gmt":"2007-02-23T16:49:04","slug":"key-questions-to-ask-your-realtor-before-you-buy-a-commercial-property","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1065\/key-questions-to-ask-your-realtor-before-you-buy-a-commercial-property\/","title":{"rendered":"Key Questions to Ask Your Realtor Before you Buy a Commercial Property"},"content":{"rendered":"

Cooksquared Enterprises is very close to taking its first humble step back into investing after a two year hiatus. After a disappointing stint in Greensboro, we have settled on 32 units in Winston Salem, which is about an hour away. Over the past two weeks I have been going back and forth with the broker, asking a ton of questions, clarifying local business practices, and doing my best to get in touch with the seller. Through all of this I thought it might be helpful for other investors to understand the major questions I ask of my realtor when looking at a deal. For you veterans out there, read on and feel free to add some value in the comments section if I miss anything.<\/p>\n

First, I am more of a new age investor. I do everything in Excel, using my own personal models painstakingly put together through trial and error. Even if you are not an Excel investor, I personally suggest writing down key learnings from every deal. It’s always good for a laugh when you look back at how long the list was from your first deal, plus it really helps you reflect on what you did well and what you can improve upon. For those of you interested in a very simple model to get you started, I am more than willing to share one if you email me (mc140@cornell.edu<\/a>). Please remember that I am an apartment investor, so all of my models are based on purchasing apartments.<\/p>\n

Once I put the deal in my model, the analysis begins. Typically, the first question to my realtor is where the numbers are coming from. There will be three main areas to focus: Rent rolls, expenses, and cap rates. Typically, Net Operating Income (NOI, which equals Rent roll minus recurring expenses) will be projected and then divided by the current cap rate. Watch out for two seller tricks. The first is to project an unreasonable NOI. For example, many sellers will simply increase rent rolls by 5-10% (or more) and not include a market vacancy rate. The second is either not Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Cooksquared Enterprises is very close to taking its first humble step back into investing after a two year hiatus. After a disappointing stint in Greensboro, we have settled on 32 units in Winston Salem, which is about an hour away. Over the past two weeks I have been going back and forth with the broker, […]<\/p>\n","protected":false},"author":16,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,2,8,5],"tags":[],"class_list":{"0":"post-1065","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-blogging","7":"category-general","8":"category-investment","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":6776,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6776\/ask-the-bloodhounds-what-are-your-top-recommendations-for-a-realtor-just-starting-out-in-todays-market\/","url_meta":{"origin":1065,"position":0},"title":"Ask the Bloodhounds: “What are your top recommendations for a Realtor just starting out in today’s market?”","author":"Greg Swann","date":"January 31, 2009","format":false,"excerpt":"An email from Nicole Ford, a newer agent working on the Gulf coast of Texas:Hi Greg, \u00a0 I'm a new agent (started in July)\u00a0and have recently started reading the Bloodhound Blog. First, I want to say thank you for providing such an incredible resource. Second, I have a question that\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1723,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1723\/how-to-suck-as-a-realtor\/","url_meta":{"origin":1065,"position":1},"title":"How to SUCK as a Realtor","author":"Lani Anglin","date":"August 1, 2007","format":false,"excerpt":"After spending a lot of time this week following up on various ads, trying to track down Realtors to ask quick questions about their listings and spending time on \"competitors'\" websites and blogs, I have determined that there is a formula to how to SUCK as a Realtor. Part of\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2968,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2968\/its-1000am-do-you-know-where-your-realtor-is\/","url_meta":{"origin":1065,"position":2},"title":"It’s 10:00AM; Do You Know Where Your Realtor Is?","author":"Barry Cunningham","date":"April 14, 2008","format":false,"excerpt":"Do you know that the Realtor who you have your house listed with is actually still earning their living as a Realtor? That was the concern recently voiced and posed to us by a concerned agent in Poinciana, Florida. \"In Central Florida, for example, over 50% of real estate agents\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"Real Estate News } Real Estate Radio USA","src":"https:\/\/i0.wp.com\/www.realestateradiousa.com\/blog\/wp-content\/uploads\/2008\/04\/missing.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2811,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2811\/real-estate-is-entertainment-%e2%80%93-are-you-entertaining\/","url_meta":{"origin":1065,"position":3},"title":"Real Estate is Entertainment \u2013 Are You Entertaining?","author":"Dave Phillips","date":"March 20, 2008","format":false,"excerpt":"Last week I heard my pal Walt Baczkowski, CEO of the Metropolitan Consolidated Association of REALTORS\u00ae, make the statement, \u201creal estate has become entertainment.\u201d\u00a0 The statement struck me like one of those V8 smacks to the head.\u00a0 The more I thought about it, the more the statement became true.\u00a0 Just\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":413,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/413\/blogoff-post-36-ask-the-broker-why-do-people-hate-realtors\/","url_meta":{"origin":1065,"position":4},"title":"Blogoff Post #36: Ask the Broker: Why do people hate Realtors . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"The question is Cathy's, and it really plagues her:Why do people hate Realtors?It's funny, truly, because almost nobody hates his own Realtor. Some people have real horror stories to tell, but most people don't. To the contrary, most people have very happy, funny, charming stories to tell about the Realtor\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":485,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/485\/repeat-after-me-mr-realtor-what-do-you-charge\/","url_meta":{"origin":1065,"position":5},"title":"Repeat after me: Mr. Realtor, what do you charge?","author":"Greg Swann","date":"September 29, 2006","format":false,"excerpt":"This is my real estate column from today's Arizona Republic (permanent link). Today should be a fun day. My editor told me that, in respose to last week's column, a Realtor called him, threatening to turn me in to the Arizona Department of Real Estate. I can't imagine what the\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1065"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1065\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}