CCIM experience in commercial real estate allows me to access commercial properties in every market, including Arizona and Nevada. Please contact me if you are in search of income producing property and I will search my numerous databases for the right property and email them to you.
Please provide me with the following:
1. How much would you like to invest?
2. Have you ever invested in commercial property before?
3. What kind of cap rate you are looking for.
4. Strictly in California or are you open to other states?
5. Do you want one property or a certain number of properties?
6. Do you prefer Retail centers, Apartments, or Industrial?
7. Owner occupied or do you prefer Triple-Net lease properties?
rick@rickmayelian.com
General Glossary:
*Annual debt service - (ADS) is deducted from NOI to determine the cash flow before income taxes.
*Cap Rate - Take the NOI and divide it with the purchase price and you get the cap rate in a percentage number.
*Common Area Maintenance - (CAM) Costs associated with maintaining the common areas of a property, such as hallways, lobbies, grounds and parking lots.
*Cash on Cash Return in Real Estate - the property's annual net cash flow divided by your net investment, expressed as a percentage.
Example:
If the net cash flow from a property is $10,000, and the cash invested in the property is $100,000, then the Cash on Cash return is calculated to be 10% ($10,000/$100,000). The net investment in property is the cost of the property less the amount you borrowed.
Net Operating Income - (NOI) The potential rental income plus other income, less vacancy, credit losses, and operating expenses.
Gross Rent Multiplier - (GRM) The Gross Rent Multiplier or GRM is a ratio that is used to estimate the value of income producing properties. The GRM provides a rough estimate of value. Only two pieces of financial information are required to calculate the Gross Rent Multiplier for a property, the sales price and the total gross rents possible. If this information is available for multiple sales of similar types of income properties in a particular area, it can then be used to estimate the market value of other similar properties in that area. Some investors use a monthly Gross Rent Multiplier and some use a Yearly GRM. The monthly Gross Rent Multiplier is equal to the Sales Price of a property divided by the potential monthly gross income and the Yearly GRM is the Sales Price divided by the yearly potential gross income.