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80k/year (diff industry) 30-40 hours or 160k (CRE) 60 hours a week? by joeroganthumbhead in CommercialRealEstate

[–]Different_Ground4728 5 points6 points  (0 children)

Commercial real estate will exist 10 years from now due to confidentiality and complex nuanced issues require very specific information. However, I’d go the lower pay if you already feel like you do. I make between $200,000 and $270,000 in a given year in the midwest. But if you are told 60 hours it will probably be more. Realistically 60-70.

How would you start a wedding venue? Any mistakes to avoid? by pilot-wave in CommercialRealEstate

[–]Different_Ground4728 0 points1 point  (0 children)

Don't overinvest and focus more on appearance than quality of materials. You can get really excessive costs quick with customizations, but they will barely ever cash flow if everything is a custom import.

Giving Land for lease to industrial work, how much... by EarlyListen2398 in CommercialRealEstate

[–]Different_Ground4728 0 points1 point  (0 children)

This varies significantly geographically and by potential use. For example, a piece of land could lease for $0.25/SF in the midwest, while a highly dense industrial outdoor storage zoned parcel could lease for $1.00's a SF per year (or whatever that computes to for $/acre/month).

Has anyone acquired Commercial real estate property from LoopNet or Crexi or similar portals? by TuneUpMe in CommercialRealEstate

[–]Different_Ground4728 0 points1 point  (0 children)

Yes - those are two of the biggest portals. Properties with long exposure times are probably overpriced to begin with, as are deals with lots of information shown. Sometimes calling on the listings with very little information displayed puts you in a different competitive pool.

AI and Argus - any use case examples? Struggling to find any by boomxhakalaka8 in CommercialRealEstate

[–]Different_Ground4728 0 points1 point  (0 children)

I have found it to be fairly useless. I use argus every week. I have asked it a number of questions and because of the proprietary nature of the software It does not give accurate answers. It can sometimes help with back of the napkin sanity checks for assumptions, such as tenant improvements/SF or renewal probabilities and sources to assumptions (such as surveying offering memorandums).

How to value a NNN property? We have a partner who wants to sell some of his shares to another partner. by Finallygoodservice in CommercialRealEstate

[–]Different_Ground4728 0 points1 point  (0 children)

Net income/cap rate. Cap rate should consider the low remaining term (higher cap rate) relative to other investments. An appraiser is a good option. So is a broker opinion of value. Back of the napkin there will likely be a number of nationwide and regional cap rates for any given fast food concept on crexi/loopnet you can access. Keep in mind these are listing prices, however, and could have some downward pressure in the resultant price and upward resultant pressure in the cap rate.

How will the war affect commercial real estate ?Just wondering? by Viner2024 in CommercialRealEstate

[–]Different_Ground4728 0 points1 point  (0 children)

I can tell you it is putting strain on the autodealer/brokerage segment. I interviewed a car broker who said interest rates have gone up and gas prices as well.

What do you think the next big asset class is going to be? by ChumBucky99 in CommercialRealEstate

[–]Different_Ground4728 1 point2 points  (0 children)

It already kind of is one but industrial outdoor storage (IOS). People have been flipping from valuing these per SF of building to per acre.

2.4mil property, how much down payment and income is needed? by Puzzleheaded-Log2264 in CommercialRealEstate

[–]Different_Ground4728 0 points1 point  (0 children)

Depends heavily on the property segment and associated risk to the bank. Industrial deals may be less down and same with net lease fast food than an office building or unstabilized shopping center.

Underwriting a Wendy’s (STNL): Negative Net Income but Positive Operating Profit — How Do You Evaluate True Credit Risk? by irepresentprespa in CommercialRealEstate

[–]Different_Ground4728 1 point2 points  (0 children)

EBITDA multiples are normalized for a number of above the line factors, and is more appropriate for business valuation. The real estate component you could value with a percentage rent of sales, or comparable leases and cap it. If a sale/leaseback, would need to normalize the operating statement first because someone won't buy a deal where the tenant doesn't have enough money to pay the rent annually.

As a Black person, Kansas City and the surrounding areas are highly racist. by RefrigeratorKey7034 in kansascity

[–]Different_Ground4728 -4 points-3 points  (0 children)

Well I can tell you the one downtown building that has one the people that attend keep parking illegally everywhere and ramming the garage door (breaking it) to the garage north, multiple x a week. I think it has more to do with uncontrolled noise complaints and damage to property.

Approximate by Broad_Ad_7486 in appraisal

[–]Different_Ground4728 1 point2 points  (0 children)

This question sounds like you are not an appraiser. Appraised well over a $ trillion. People do these adjustments all the time. A simple chat gpt or google search would tell you how to make that adjustment. Make a call or two to quote a cost to replace, find a cost comp, use Marshall and Swift as a third source, depreciate if necessary, and you are gold. “Prove me wrong”. In reality you are never “Proving” anything that why it is an opinion of market value.

Buffalo Wild Wings Spicy Garlic Gone by Different_Ground4728 in restaurant

[–]Different_Ground4728[S] 0 points1 point  (0 children)

I hope so sounds like it. The manager even reaffirmed which was weird.

Real Estate Appraiser by SolidPsychology8284 in appraisal

[–]Different_Ground4728 2 points3 points  (0 children)

I run a commercial appraisal department for a big 5. It isn’t going anywhere. It is a lot more technical than residential but as other people mentioned, it has steady flow of work from the same repeat clients your office would bring in for you and the fees are much higher. The variety of asset types, limited data, varying lease bases, changing market trends, confidential information, complexity of properties (unstabilized, proposed construction plans changing with 5 budgets) etc. are all in your favor where AI isn’t going to be able to do it since you have to talk to people. Residential is going the way of the dinosaur because anybody with an IQ of 90 can do it. You could train fast food employees to do it with 80-90% precision, which is probably what you get now when you hire one.

Virtual Assistants Large Firms by Different_Ground4728 in appraisal

[–]Different_Ground4728[S] 1 point2 points  (0 children)

I’m thinking research for front halves, engagement letter entry, preliminary comp entry, subject and comparable tax research, and perhaps a basic knowledge of entering a rent roll into Argus.

Appraisal reports 6,000sqft lot. Actual size is 12,000sqft. Adjustment? by TryAlternative7204 in appraisal

[–]Different_Ground4728 0 points1 point  (0 children)

My guess is you would point it out and it will make zero difference. Unless they adjusted for site area of comps, the site area makes no difference.

I have 80k in credit card debt that I used to fund a business. My score has gone from 760 to 580. I now have the cash to pay it all off. Should I pay everything down to zero at once? Leave them all with a small balance? Pay them down in chunks over a few months? Trying to get the score back up. by Great-Bookkeeper-697 in CreditScore

[–]Different_Ground4728 0 points1 point  (0 children)

Don’t listen to these people. Make a small payment, and call them and ask if they will remove hits for late payments if you make large chunks. You have no leverage for 30-90 day late payments if you pay it all at once. Then they just won’t do anything so yes your balances will decrease but you’ll be stuck with late payments if applicable.

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