CELEBRATING 41 YEARS

• Define your goal:
  
  • Cash flow (stable income)
  • Value-add (improve + raise rents)
  • Development (higher risk, higher return)
• Choose asset type + risk level

• Market strength (job growth, population growth)
• Supply vs demand
• Submarket trends (not just the city overall)

• Know these metrics cold:

  • NOI (Net Operating Income) = income – expenses
  • Cap Rate = NOI ÷ Purchase Price
  • Cash-on-Cash Return
  • IRR (Internal Rate of Return)

  👉 The deal is made or lost here.

Before closing, verify everything:

• Leases (rent roll, expirations, tenant quality)
• Expenses (taxes, maintenance, hidden costs)
• Physical condition (roof, HVAC, structure)
• Environmental risks

• Debt structure matters:
  
  • Interest rate
  • Loan term
  • Loan-to-value (LTV)
• Impacts your returns significantly

Ways buyers increase value:

• Raise rents to market
• Reduce expenses
• Improve property (renovations, re-tenanting)
• Increase occupancy

• Sell when:
  
  • Cap rates are low (prices high)
  • NOI is strong or growing
• Market cycles matter a lot

• Increase rents where possible
• Stabilize occupancy
• Clean up expenses

👉 Higher NOI = higher valuation

• Tell a strong “story”:
  
  • Stable income vs upside potential
• Prepare:
  
  • Rent roll
  • Financials
  • Offering memorandum (OM)

• List through brokers + platforms
• Target qualified buyers (investors, funds, 1031 exchange buyers)
• Create competition to push price up

• Price is just one term:
  
  • Closing timeline
  • Contingencies
  • Earnest money
• Strong buyers = more certainty of closing

• Navigate:
  
  • LOI → Purchase & Sale Agreement (PSA)
  • Buyer due diligence period
• Avoid deal fall-throughs