Property buyers are inundated with deal flow right now, so they are forced to get picky with which deals to screen into their pipeline. In the e-book below, you will learn how you can get a warm reception when you broadcast your marketing packages.
- Adopting and sticking to a standard presentation format
- Doing the deal proud with polished visuals
- Including an excellent executive summary
- Bringing financial projections to the forefront
- Looking at the deal from the buyer’s point of view
- Making financial projections easily manipulable
- Making financial projections iPad-friendly
Back-solving (goal seeking) in Valuate is easier and quicker than in Excel…
Back-solve to a property purchase price for a target cap rate or equity multiple with a single input.
Try it out in Valuate now!
NOTE: You may need to first clear your browser cache to enjoy this new feature… Here’s how.
Yes, we are in a healthy commercial real estate market, and it appears that it will last for some time. But it’s important to realize the potential folly in compressing exit cap rates aggressively when making projections.
Take a look at the chart and embedded Excel file below (to which you can make edits right within the embed, and which you can download for the future).
The impact of reducing the cap rate by 50 basis points (bps) is not linear, but rather exponential in nature.
A low exit cap rate can make any deal look appetizing, so go easy when making exit cap assumptions, especially at the lower end of the spectrum.
For more discussion on cap rates, see these posts on how to select future cap rates and cap rate comparisons across properties.
Thoughts? Please sound off in the comments section below.