Commercial Real Estate Success in 15 Minutes or Less CENTURY 21 Commercial New Millennium

T3, T12, IRR, NOI, Cap Rate, Equity Multiple…how to make sense of what’s what.  After you’ve gathered much of your due diligence materials, you need to update your proforma to account for what you’ve learned and how it impacts the transaction.  Stephen addresses these issues along with how to avoid common proforma mistakes, such as underestimating real estate taxes post-sale, adjusting for inflation risks on operating expenses, and the fallacy of using the seller’s insurance premium in your proforma.

Going through the due diligence process during a limited amount of time can be a daunting task, especially as the numbers get bigger and the property complexity rises. Stephen shares more best practices for buyers and their brokers on how to navigate the due diligence process and avoid the distraction traps that can cause problems.

When your client is exchanging their $2,500,000 property up to a $6,000,000 property and they need your guidance during the due diligence property, how are you going to assist them as the buyer’s broker? Stephen has been through this process many times before, and in this podcast, he shares his insights from his years of commercial transaction experience. This podcast addresses many of the traps, oversights, and costly mistakes that a buyer can make during the due diligence process.

When a commercial broker takes on a new listing, they need to do the necessary pre-listing due diligence before taking the property to market. In this episode, Stephen works through the tasks every commercial real estate broker should go through before they bring their client’s property to the market. Stephen addresses some of the mistakes brokers make, and, of course, how to avoid making those same mistakes.

In this episode, Stephen discusses the importance of having regularly scheduled marketing reports that each listing broker should provide to their clients. These reports help to keep the seller informed of the listing broker’s activities, keep the listing broker focused on marketing the listing and engage the client in the sales process. Best practices include defining at the start of the listing agreement when the reports will be provided and having a streamlined process to produce quality updates efficiently.

You can experience the same issues as the sale of commercial real estate when selling businesses. By signing a CNRA, you do the following. 
Protect against employee poaching by a competitor Protect tax returns and bank statements (2nd level of the info provided after going under contract) Control landlord conversations, especially when the lease is coming due and the landlord tries to take advantage of the situation Prevent unauthorized disclosure that the business is for Sale