Realmo Blog - Page 2

Self-storage economics explained: unit mix, occupancy and rate management, low capex, third-party operators and what really drives facility value.

Where off-market deals really come from: broker relationships, direct owner outreach, data lists and county records – with outreach tactics that work.

Vacancy, rollover, interest rate, liquidity and capex risk – the main ways commercial real estate deals lose money, and how owners limit damage.

Direct ownership, syndications, funds and REITs compared on time, control, fees and returns – and which suits a passive or hands-on investor.

The four phases of the real estate cycle – recovery, expansion, hyper-supply and recession – and how to tell which phase your market is in.

How owner-occupied property differs from an investment asset: financing, down payment, tax treatment, valuation and exit options compared.

What Class A, B and C mean in commercial real estate: age, location, finishes, tenant profile, achievable rents and cap rates for each class.

Buy or keep renting? Owner-occupied purchase costs, SBA financing, break-even math and the risk of tying working capital to a building.

Broker, lender, appraiser, attorney, title company, property manager – what each role does in a commercial real estate deal and who pays for it.

Appraisal and pricing terms defined – cap rate, reconciliation, highest and best use, reversion, BOV, USPAP – with links to the full guides.

Rates change debt costs, cap rates and buyer demand at once. How a rate move transmits into pricing, and why values lag the rate change by months.

Unlevered IRR grades the property, levered IRR grades the capital stack. How debt widens the gap, and what a narrow spread says about a deal.

Why medical tenants stay longer: specialized build-outs, on- and off-campus locations, lease structures, reimbursement risk and typical cap rates.

A BOV is a broker’s pricing estimate, not an appraisal. What’s inside one, what it costs, when lenders accept it, and how to read its assumptions.

Different comps, different cap rates, different highest and best use. The real sources of appraisal discrepancy, and how to challenge a low value.

Equity multiple shows total dollars returned per dollar invested and ignores time. How to calculate it, what’s strong, and why IRR is the other half.

Debt service, capex, depreciation and owner draws stay out of NOI. A checklist of which line items belong above the NOI line and which don’t.

There’s no universal good cap rate. How ranges shift by asset class, market, tenant credit and interest rates, with benchmarks to sanity-check a deal.

How office assets work: rent structures, TI and leasing costs, vacancy risk, financing options and what underwriting an office building looks like now.

In-place rent below market caps NOI until the lease rolls. How buyers discount that gap, value the future rent bump, and price remaining term.

How lenders size a commercial loan: what DSCR, LTV and debt yield measure, typical thresholds by asset type, and which one caps your loan.

Leasing vocabulary in one list – NNN, CAM, TI, base year, expense stop, WALT, recapture, estoppel – defined plainly, with links to full guides.

When too many leases expire at once, income and value wobble. How to read a rollover schedule, stagger expirations, and budget for downtime and TI.

A personal guarantee puts your own assets behind the lease. Full, limited and good-guy guarantees, burn-off provisions, and how to negotiate them down.