RES 442 Notes

RES 442 Notes - When picking up base year expense your...

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RES 442 Net lease-Tenant pays for everything and the difference between the owner and tenants Modified Lease- Real estate pilot- when you take the tax out of the general fund and allows you to make a deal outside the fund. 1.27 debt cover ratio Above 1 means that you can cover your debt. For every dollar of debt they want to see you make a 1.25 They would increase the operating expense of the property that may not be real Reduces the net operating income that is not true Do a projection on the property that your going to be looking at ! Gross Lease NOI/ Cap Rate Cap rate means what someone will be willing to pay for that capital stream Cash Flow constraint – Cash flow coverage ratio is 1.25 Lowering debt cover ratio will have a better influence Leverage return – 20 mill – 13 704 947 Base year expense- after the base year you pay procratic Expense ^^^^ 13% loss factor Possession date – in which the tenant can take possession of the property before their move in date
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Unformatted text preview: When picking up base year expense your operating income will be affected The renewal option is better for the tenant they can negotiate a better price than they originally had it. Unilateral right that the tenants have to renew or not to renew If rents are going up and their renewal rent lower theyll renew Net lease effects the income statement Asset type: office, mix use, hotel, single tenant multiple tenant, retail Risk profile: 1 is the safest 10 is the riskiest. What is the risk for that property and give some background. Cap rate: The reasons why? familiar with the property and housing around it, traffic, lease placing in a while Rent Roll: who occupying the space, when the lease commence, expires, base rent, square footage, monthly base rent, operating expense, and taxes. Loopnet Call local brokers Capital budget: Hard costs and soft costs Revenues and expenses if the property has 100,000 $ of rent 50,000 net income 50,000 x 1.25...
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This note was uploaded on 04/05/2012 for the course RES 442 taught by Professor Johnhucko during the Spring '12 term at Syracuse.

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RES 442 Notes - When picking up base year expense your...

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