MF Reasonable Yearly Rental Increase..
Hi,
I am trying to due diligence on a property, and what would you recommend to be a conservative of rental increase across the years. 1%, 2% or 3% year after year ??
Hi,
I am trying to due diligence on a property, and what would you recommend to be a conservative of rental increase across the years. 1%, 2% or 3% year after year ??
check local laws.
Birddog, is this a property you own? Or are you an agent of some kind?
The best thing you can do is to find a local mortgage broker recommended by investors or real estate agents you know. They should also have experience closing commercial deals.
Also find a local bank and sit down with the business banking VP and let them have a look.
This will give you some options and you will also get some good advice.
Bring all relevant docs (deeds, appraisals, anything showing valuation, tax returns on the properties for the last 3 years, any operating statements, and if possible find a realtor who is knowledgeable about rentals in that area, and can show if the rents are below, at, or above market. This will tell if the numbers are good, will get worse, or can be made better.
See what the bank and the broker have to say. I believe you can find a way to get this deal done. Even if it means taking out several different loans. Also, you might try putting that property on loop net and see if you can find someone on there. I know loop net is supposed to be only commercial, but I found a client from the US for 22 condos to close out a project here in the Dominican Repblic. They were considering commercial properties here, but loved what they saw in my ad, and took a look. You never know. And they are cash buyers at over $5 million dollars. Also try advertising here on TCI as investors are looking for good deals.
Just some suggestions that I hope are helpful.[ Edited by xlr8tor64 on Date 03/21/2008 ]