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Introduction to Lease vs. Own Commercial Real Estate Analysis

Property Metrics

Property owners benefit from increases in the asset’s value over time and from the tax benefits of depreciation. In addition, they may benefit from leasing excess space to other tenants, favorable loan interest rates, and the comfort in knowing that their rent isn’t subject to the whims of a landlord.

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Helping Lenders Navigate the Commercial Real Estate Appraisal Process

Simonson Real Estate

Lenders work with real estate investors and owners of small, medium and large businesses (borrowers) to help them secure financing to purchase and refinance real estate that fit their investment criteria and fulfill their business needs. Examples: A building owner has a single lease or multiple leases with tenants.

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Effective Gross Income: A Calculation Guide

Property Metrics

Effective gross income is a line item on a real estate proforma that is commonly used by appraisers, investors, and other commercial real estate professionals. A simple back of the envelope proforma for a single tenant property might look like this: In this example the vacancy & credit loss is all shown on one line.

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The Challenges of Appraising Multifamily Properties

Appraisal Buzz

It’s not uncommon for people to have tenants or roommates, but you’ll typically find that isn’t the case with single-family houses. If you want to be a real estate investor, you wouldn’t necessarily purchase multiple single-family properties when you could fit more tenants into one building. That’s why multifamily homes exist.

Appraisal 397