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Restaurant Location Analyzes: How to Find the Best Place to Open a Restaurant?

Opening a restaurant can be extremely exciting, but a large proportion of these types of businesses fail early on, so you need to make a lot of correct decisions when it comes to how to pick a restaurant business to open and the best place to open a restaurant.
You may not have realized how important the location of a restaurant is, but if you’re out of the way, and nobody knows about your business, you’re unlikely to build a customer base. Let’s dive into the methods of choosing your restaurant location analysis.

How to Find a Perfect Location for a Restaurant?

Whether you are looking for a restaurant space in Las Vegas or you are starting your business on the east coast of America, there are certain things to consider when it comes to choosing the best location for a restaurant.

Though there is no single best place to open a restaurant.

Most towns and cities have space for another, but if nobody can locate a restaurant or it is not in a built-up area then it is very unlikely that you’ll build something successful.

Restaurant Location Analysis

So how do you perform a restaurant location analysis? Below, we explore a lot of the data to take into consideration for your restaurant location strategy.

Demographic Data

The first consideration. Have you heard the saying “if you build it, they will come?” It’s definitely not true when it comes to the location of a restaurant. You need to make sure that the area is full of potential customers. If your target market is young people, for instance, are you building your restaurant in a location where young people live, work, and shop?

Safety and Crime Data

It’s always a good idea to see what the local crime data says about the location. Higher crime rates can suggest that not a lot of people are willing to visit this location of a restaurant, and also indicates that you may be more likely to experience problems with crime.

Size and Space Requirements

How much space do you need for your restaurant? If you want to build a huge steak house then building it in the center of a busy city might be prohibitive. You will want a lot of space, and this usually means more expense, especially closer to the center of a city or in a super busy location.
Of course, it is a good idea to work out space and size requirements you have for your restaurant before you settle on the best location to open a restaurant. This way, you can ignore any properties that don’t fit your requirements.

Proximity to Suppliers

We all need suppliers and other businesses that you might want to work with. Everything from where you get your fruit and vegetables to real estate asset management needs to be thought about. If you’re going to start a restaurant offering fresh fish, you better make sure you can source from somewhere near the coast.

Competition

A bit of healthy competition is always welcome, and it can be a really good way for you to drive your business growth. However, you don’t want to be competing with identical businesses, especially if they have a loyal customer base already. Consider whether or not there are similar restaurants nearby.

Zoning Regulations

Within busy downtown areas and other locations, you might find that there are zoning regulations. For instance, you might not be able to sell alcohol in a certain area, or you might have to get permission to open in this area. Contact the local town manager and ask about whether there are any regulations.

Visibility

Ask anyone “help me pick a restaurant” and they will probably tell you that you need to be visible. This means that as people are walking and driving past, they can spot your restaurant. This is how you will gain a lot of new customers, and though you can advertise in plenty of other ways, relying on local footfall might be the best.

Accessibility

How accessible is the building? Can disabled people easily access your restaurant? If you’re going to open a restaurant that has a lot of stairs, for instance, you might find that you instantly put a lot of older people off, and they won’t want to come and eat in your restaurant.

Labor Costs and the Minimum Wage

Your business is not likely to succeed if you don’t have a plan for how to staff it. Restaurants need chefs, waiters, and more staff to become a success, and if you start in an area where it costs a lot to staff your business then there is every chance that you’re going to be under more pressure to bring in the customers and make a lot of money quickly. This isn’t always doable.

Estimate Future Growth

For a lot of people, choosing the best location is all about choosing the place where your business can grow. It’s about spotting the potential in your restaurant location analysis. Is there room to grow in the future? Is this the sort of location where you can build your business to the level you want to reach? These are the sort of questions to ask when it comes to choosing a location for a restaurant.

Conclusion

Even if you start the best restaurant in town, it is virtually impossible to get the traction you need and grow to the point where your business is profitable if you’re not in a good location. People are unlikely to go out of their way to find your business. Alternatively, if you choose a good space, it can market itself. People walking past may be intrigued, and you can boost the chances of picking up more customers, better employees, and growing a better business in the process.
If you’re going to open a restaurant, spend plenty of time analyzing and working out the ideal spot to build your empire.

How to Become a Real Estate Agent in 5 Steps

A lot of people are interested in how to become a real estate agent, and it’s not hard to see why. Real estate is an exciting and prosperous industry, and the job can involve a lot of excitement and variety. Agents are able to travel around from place to place, support their local communities, meet lots of new people, and make some impressive salaries in many cases too.

However, don’t be fooled into thinking that this is an easy profession. Real estate is a notoriously competitive industry, and the job demands a lot of hard work, along with many specialist skills such as great communication, adaptability, the ability to cope under pressure, the ability to work both independently and as part of a team, and much more.

If you think you’ve got what it takes and fulfill all of the key real estate agent requirements, you’ll probably want to find out more about how to become a realtor and how to get your hands on a realtor license. This guide will take a close look at how to get into real estate, covering all the key real estate agent requirements you need to get your realtor license.

Why Become a Real Estate Agent?

First, let’s look at some reasons why you might be interested in finding out how to get into real estate and becoming a realtor in the first place.

Money – Salary is always something that people keep in mind when it comes to choosing a profession, and the money you can make in the real estate industry can be pretty impressive. Top-tier agents earn six-figure salaries and there are plenty of truly elite realtors who bring home even higher salaries.
Variety – Another big benefit of becoming a realtor and working in real estate is the variety of this kind of work. Every day can be different when you work in real estate, and you won’t feel stuck in the same boring routines or repetitive patterns, as you’ll always be meeting new clients and working with different properties.
Satisfaction – Another good reason to get your realtor license is the job satisfaction you can enjoy from working in this field. Buying and selling homes are huge milestones in people’s lives, and you get to help them through the process. It can be really rewarding to work in this way, seeing the smiles on people’s faces when a sale goes through.
Ease – A lot of jobs require college degrees and years of education, but real estate is a surprisingly easy field to get into. When you look into how to become a realtor, you might be amazed at how easy it can be. You don’t need a college degree, and all you need to do is fulfill the necessary requirements to obtain your license.

Steps to Get a Realtor License

Now that we’ve seen some of the benefits of getting into real estate, let’s now look at how to become a real estate agent in detail, with the five key steps you need to follow to get your realtor license.

Step 1: Take a pre-licensing course

The first step for how to become a realtor is to take a pre-licensing course. This should only cost around $200 to $300, but prices can vary from state to state. Regardless of your location, states across the US demand that those interested in becoming realtors undertake pre-licensing training before taking any kind of licensing exam, so this step is mandatory.

There’s a lot to learn about real estate agents and real estate asset manager responsibilities if you want to get into this business. However, the amount of training you need to get can vary from place to place. Aspiring realtors in California need to take 130+ hours of training, for example, but in some states, you only need about 60/70 hours of training instead.

The pre-licensing course will basically introduce you to all the fundamentals of real estate, teaching you terms and phrases that are key to the profession, along with essential real estate practices such as appraisal. The course should also go over the legal side of the job too.

You can usually take these courses either online or in physical classroom settings with other students, so it’s up to you to pick the style of learning that suits you best.

Step 2: Take the licensing exam

Once you’ve fulfilled the training requirements for your home state, you’ll next need to sign up and take the licensing exam. Again, it’s important to note that the specifics of this process can vary from location to location. It’s wise to visit your state’s real estate commission website to learn more.

Usually, the exam is split into two sections: one section focuses on general real estate practices and federal laws, while the second section is more about the legal side of realtor work in your specific state. Both of these sections feature multiple-choice questions, and there can be up to 100 questions in each section.

Some questions may include math, such as working out the tax on a certain property, and you’ll be allowed to bring a calculator into the examination room to help out. It’s also worth noting that most states provide sample papers for you to try out before taking the real exam, so this can be a really good way to get ready and help with any pre-exam nerves or stress you might be experiencing.

Pass rates vary from state to state, and some state papers are considered harder than others, but even if you fail, you can usually just book another attempt and try all over again. In fact, you usually have two years from your first attempt, during which you can take the exam as many times as necessary until you pass. If the two-year period expires, you’ll have to undertake training again.

Step 3: Active your real estate agent license

Once you’ve passed the test, you’ll need to make sure to actually activate your license. This is a really important step because without activation, your license isn’t technically of any real use to you and you won’t be legally allowed to start engaging with clients and selling homes.

To proceed with activation, you’ll need to once again visit your state’s real estate commission site. The process should be clearly explained on the site and you may have to pay fees of anywhere from $200 to $400 to activate the license.

You’ll then want to join up with your local multiple listing service (MLS). Being a part of your local MLS is really important, as this is the system you’ll be using to list properties for sale and get more clients. Again, there will be a fee to pay for this, and costs can vary from place to place.

Step 4: Consider becoming a Realtor®

The next step for how to get into real estate is to consider becoming an official Realtor. In case you aren’t aware, real estate agents aren’t technically allowed to be classed as true “Realtors” unless they become members of the National Association of Realtors. So this is something you’ll want to do if you want to use that title for yourself.

Fortunately, joining the association is really easy and comes with lots of fun benefits like access to discounted educational resources to strengthen your real estate property manager skills, financial management assistance, and in-depth market data you can use to drive more sales. Plus, being able to call yourself a Realtor gives you a lot more credibility in the eyes of clients.

Step 5: Join a brokerage

Once you’ve fulfilled all of the necessary real estate agent requirements and got your license activated, you’ll need to join a brokerage. This will allow you to legally start practicing real estate in your state. Brokers are a key part of the process, as they’re legally obligated to oversee transactions and make sure that all agents and realtors abide by the law.

Fortunately, it’s quite easy to join up with a local brokerage, as many pay by commission, so they aren’t really taking any risks of losing anything by bringing new agents on board. From there, it’s up to you to work hard and start selling some homes.

How much do real estate agents make?

One of the big questions many people have in regard to becoming a real estate agent is about how much money they can expect to make. Well, the answer is that it depends. Real estate agents typically work by commission, so they make money based on the number and value of the properties they sell.

So, if you’re a good agent working with high-value properties, you can potentially make a lot of money, but when you’re just starting out and struggling to get your first sale, it can be more of a challenge.

Still, most agents earn pretty well, with statistics showing that the average salary is just over $45,000. The top 10% of agents earn much more, in excess of $165,000, and those at the very top of the ladder can earn millions per year just for selling a few very expensive, luxury properties in high-value areas.

The Bottom Line

Overall, real estate can be a great line of work, with a lot of advantages and big rewards for those who are willing to put in the time and effort to succeed. Follow these steps and start learning more about real estate if you’re interested in giving it a try.

Guide to Living in Las Vegas

/in News /by ramgroupam

Known as Sin City and the Entertainment Capital of the World, Las Vegas is one of the most famous and iconic locations in the whole of the United States. Filled with crazy casinos, elegant hotels, and non-stop lights, action, and entertainment, it’s a completely unique place that draws in millions of visitors from all over the globe every single year.

But what about living in Las Vegas? What is it like living in Las Vegas and is Las Vegas a good place to live compared to other cities? Well, there are a lot of people interested in moving to Las Vegas or relocating to Las Vegas from other places around the US, but many aren’t sure if it’s the right move for them. This guide will cover all you need to know about living in Las Vegas to help you decide.

Living in Las Vegas: The Basics

A Brief Overview of Las Vegas

Las Vegas is a special city with a lot of history. These days, it’s best known for its fancy casinos and bright lights, but it was founded as a simple ranching town back in the early 20th century.

The arrival of local gangsters like Bugsy Siegel helped the city’s casino and nightlife culture grow over time, and many people are now familiar with the sights and sounds of the iconic Strip, with Vegas being one of the most-visited cities in all of America.

The Cost of Living in Las Vegas

One of the big factors on your mind, if you’re considering moving to Las Vegas, is probably the cost. Well, it’s actually not all that expensive to live in Vegas. Statistics show that rental rates range from around $750 up to $1,750, and home prices are relatively reasonable.

There is no sales tax to worry about in Vegas, and average monthly living costs are close to $3,000 for a family of four or $800 for a single person.

The Las Vegas Job Market

Of course, if you’re thinking about relocating to Las Vegas, you’ll need to think about where to work and how to earn money. Fortunately, there are a lot of job opportunities here, especially in the hospitality sector, with tons of hotels, restaurants, casinos, and bars.

Other big industries in the Vegas area include tech, healthcare, manufacture, and finance, with average salaries of $3,000. Plus, there are many people starting new businesses in Las Vegas too, and a property management company can help you find the perfect working locations at the best rates.

Transportation in Las Vegas

Owning your own car can be a benefit in Vegas, just like in any other city, but many people rely on taxis and ride share services like Uber and Lyft to get around. There’s a monorail system along the Strip too, as well as bus services.

Crime

Another concern for people thinking about moving to Las Vegas is crime. Crimes of all kinds do occur in and around Vegas, but this is true of the vast majority of big US cities, and you can carry out research to find the best neighborhoods in Las Vegas for safety and families.

What to Do in Las Vegas: Culture and Nightlife

Culture Beyond the Strip

When moving to Las Vegas Nevada, it’s important to note that there’s much more to this city than meets the eye, and there are many surprising reasons to move to Las Vegas beyond the obvious attractions of hotels and casinos like the Luxor and MGM Grand.

The city has its own professional sports teams, like the Golden Knights, who play at the T-Mobile Arena in the NHL. Locals also love flocking to places like The Park, which is a lively dining and entertainment district, filled with top eateries.

Culture: Art and Music Suggestions

If you ever get tired of playing slots or have little interest in the typical casino and hotel life of Las Vegas, you’ll be happy to know that the city also boasts a superb selection of galleries and music venues too.

Head to the ARIA Fine Art Collection to peruse some stunning sculptures and paintings throughout the year, or visit local hotspots like Velveteen Rabbit or The Griffin to hear the best in local and touring music.

Getting Outdoors

One of the best reasons to move to Las Vegas is its close proximity to so many amazing outdoor attractions and natural places.

You can take a short drive out to Lake Las Vegas, for example, for scenic walks and boating experiences, or visit Red Rock Canyon for bouldering, hiking, climbing, and other outdoor activities.

Sports

In the past, Las Vegas was one of the few big cities that were left out of the big sporting leagues and didn’t have any major teams to speak of. So is Las Vegas a good place to live for sports fans? Well, thanks to some recent developments, it absolutely is!

Nowadays, the city boasts its own NHL team (the aforementioned Golden Knights) and, in 2020, celebrated the arrival of its first NFL team: the Las Vegas Raiders. Many big boxing bouts and UFC events happen in Vegas too, along with basketball and baseball games at various levels.

Pros of Living in Las Vegas

So Many National Parks Close By

If you love the great outdoors, you should definitely consider relocating to Las Vegas. There are many amazing national parks just a short drive away, including Red Rock Canyon, Tule Springs Fossil Beds National Monument, Lake Mead, Valley of Fire, the Mojave National Preserve, and others.

Traffic and Parking

Despite being such a big and popular city, Las Vegas is surprisingly easy to get around. If you’re used to driving in a big city like Los Angeles or New York, you’ll be blown away by the simplicity of Vegas’ road system, with relatively low amounts of traffic and really easy parking as well.

The City is Fairly Diverse

Las Vegas has a lot of diversity and is the sort of place where anyone can be made to feel welcome. The city brings in visitors and permanent arrivals from all over the globe, with people of all races, orientations, and backgrounds here, and it’s a very open, accessible, and progressive city for the most part, so it’s a good place to start a family and feels right at home.

Great Weather Most of the Year

Thanks to its prime location in the heart of Nevada, Las Vegas enjoys wonderful weather conditions for much of the year. If you ever wondered “What is it like living in Las Vegas?” then just imagine lots of warmth, sunshine, and very low amounts of rain. The heat can get a little too much in the middle of summer, but there are always air-conditioned buildings to cool off in.

Always Something to Do 24/7

Another of the many reasons to move to Las Vegas is the fact that this city offers something for everyone at any time of day or night. It’s a city that doesn’t really have an “off” switch. There are always things going on, from the round-the-clock casinos to live entertainment, comedy, music, magic, restaurants, bars, nightlife, museums, excursions, adventures, and more.

Great Residential Neighborhoods & Suburbs

There’s no need to live right in the heart of the city when moving to Las Vegas. The city offers a lot of great residential areas out in the suburbs, with easy access to the downtown areas for work and entertainment, but more quiet and relaxed conditions that will help you relax and feel more at peace, away from the hustle and bustle of the Strip.

Cons of Living in Las Vegas

Summer

One of the big cons of living in Las Vegas is dealing with the summer. The heat can be very oppressive, and a lot of tourists inevitably descend on the city in the summer months too, so this can be a tough and tiring time of year, but if you know the area well, you can avoid the crowds, and a good AC system can help you battle the heat too.

No Public Transportation

Many people worry about what is it like living in Las Vegas without a car, and the truth is that it can be difficult because the city doesn’t have a great public transportation network. There are some buses to help you get around the downtown areas, and most people use taxis and Ubers, but there isn’t a good subway or light rail system here like you might find in New York or San Francisco.

Scorpion Infestation

Is Las Vegas a good place to live if you don’t like creepy crawlies and critters in your home? Not necessarily. The surrounding desert is home to a lot of different scorpions, with 25 different species commonly found in the Las Vegas area, and they can find their way into homes and workplaces, causing fear and havoc among the locals.

Desert Can Age You

Another downside of living in such a dry and hot place as Las Vegas is that it can actually speed up the aging process of your skin. Dry conditions make it hard for skin to remain supple and soft, and many Vegas locals find that they have to make use of more advanced skin creams and lotions to avoid wrinkles and dryness.

What Is a Commercial Property Insurance?

/in Latest News, News /by ramgroupam

When running a business, there are many different factors to think about and responsibilities to cover, from hiring a top team to marketing your products and services effectively. You also need to think about protecting your business property from potential accidents, crimes, and disasters, and this is where commercial property insurance comes into play.

Also commonly known as business property insurance or commercial real estate insurance, this type of insurance is available for business owners who want to protect their properties in case of things like fires, thefts, storm damages, and so on. Not only can it protect your physical workspace, but also your business equipment and assets too, so it’s a very valuable and highly recommended form of insurance.

What Does Property Insurance Cover?

In order to fully understand what is commercial insurance, we have to know what a typical policy will actually cover. If you choose to take out some commercial property insurance, you can expect the average policy to offer the following areas of coverage:

Building – Commercial property insurance coverage should cover the actual physical building in which you carry out your work, such as an office building or retail store location, protecting against the likes of fire damage, storm damage, and so on.
Equipment and Tools – The vast majority of businesses rely on certain tools and pieces of equipment in order to function and carry out their day-to-day processes. Examples may include computers, machines, and so on. Commercial insurance will cover these items too.
Inventory – If you’re running some sort of retail business, you may have a lot of stock or inventory in your business location. A clothing store, for example, will have many items of clothing stored at the location. Business property insurance covers your inventory in case of damage or theft.
Furniture – Items of furniture are also included in commercial property insurance coverage too. So if you have an office space with desks, tables, lamps, chairs, and so on, you can get these items insured.

All of the above items will be covered in a wide range of situations, including criminal situations in which items are stolen or damaged intentionally, storm situations where lightning strikes and weather conditions cause damage or fires where flames and heat damage property and possessions. It can cover the necessary costs to have damaged, destroyed, or stolen items repaired or replaced, including items that aren’t actually yours but are under your care.

How Do I Buy Property Insurance?

It’s clear to see that commercial property insurance can be very important for any business, but how do you go about buying it? Well, this is quite simple. You can conduct research to find trusted business insurance companies online, reading reviews, and comparing options to find a policy that works for you, and then you can contact the company and make arrangements to buy a policy.

A lot of the purchasing process for this kind of insurance can be carried out online or over the phone. You’ll need to select and customize your plan according to your own personal needs and budget, as well as providing the necessary information to calculate your monthly or annual premium. If you have any doubts or confusion, you can speak with an insurance agent directly for more details.

What If I Don’t Own the Building?

There are many situations in which business owners run their businesses out of properties that are leased, rather than owned. In this case, you might wonder whether or not the commercial property insurance coverage will actually protect you in case something happens to the building in which you’re working, or if you’re even able to take out a policy at all.

Well, it is still possible to get business property insurance, even if you don’t own the building you’re working in, but it isn’t always necessary. It’s important to check the details of your lease to find out more. In some cases, the building owner will be the one to handle building insurance, and you can simply take out insurance for your business equipment, inventory, and possessions. In other cases, the tenant may be responsible for getting business property insurance.

What Determines My Insurance Cost?

When it comes to calculating the cost of your business property insurance, there are several factors that come into play, and it’s important to focus on calculating commercial property value and considering the specifics of your plan too. Here are a few factors that may affect the cost:

The total value of the property that needs to be covered, including equipment, furniture, and all other assets. If you want coverage for higher values of property and possessions, you’ll usually need to pay a higher premium.
The location of the business in question, as some areas are more prone to crime or storms than others, so may have higher monthly or annual premiums to pay as the risks of claims are higher.
Coverage limits and deductibles are chosen by the policy owner. Choosing higher deductibles and lower limits will reduce the price you have to pay each year, but could also increase the costs you pay if and when accidents or incidents happen.

Does Property Insurance Cover All Legal Risks?

It’s important to note that business property insurance will not cover every single legal threat to your business. There are various other components and assets you might use as part of the business that could require additional or separate insurance policies, like vehicles, securities, land, outdoor structures, and so on.

Your policy might also not protect you in cases of flood or certain types of crime, and you may need to expand your plan with add-ons for extra coverage if you want protection against these kinds of risks. This is why it’s wise and strongly recommended to speak with your insurance agent in detail and ask questions about your plan so you’re fully aware of exactly what is and isn’t covered.

Best Neighborhoods in Las Vegas To Buy a Home

/in Latest News, News /by ramgroupam

Las Vegas is one of the most welcoming cities in the world, offering real estate options in a wide variety of price ranges. Often cited as the “Entertainment Capital of The World,” Las Vegas can be a surprisingly beautiful and peaceful location despite the common stereotypes you might hear. And let’s not forget the very low crime rates!

That’s right, peace and quiet. Las Vegas is actually mostly like living in the suburbs of any other city, apart from when you take a stroll down the strip, which is where you will find the quint-essential, neon-soaked Las Vegas experience.

But, other than that, all the best neighborhoods in Las Vegas are the very definition of the suburbs. On top of this, the vast majority of neighborhoods are safe and boast relatively low crime rates compared to other areas in the nation.

As for the weather, It tends to get pretty hot in the summer (as you might expect), with temperatures sometimes going over 100°F (38°C), while the winter months get as low as 38°F (3°C). However, most commercial property management Las Vegas agents will recommend that you get a house with a pool, so you can kick back, relax, and enjoy the scenery.

The thing is, the best Las Vegas neighborhoods are not necessarily the most expensive (depending on your taste and budget). You will also need to check Nevada property records to confirm that you are up to date on any deed, title, and tax information. The median house price tends to fluctuate around $300,000, which is pretty reasonable considering you’d be living near stars such as Nicolas Cage, Celine Dion, Floyd Mayweather, and Mike Tyson. With that said, let’s go over the six neighborhoods we deemed as the best places to live in Las Vegas.

Our list of 6 best neighborhoods in Las Vegas:

Centennial Hills
Green Valley South
Rancho Charleston
Summerlin
Whitney Ranch
The City of Henderson

Centennial Hills

The Centennial Hills is located in the north-western part of the city and is considered to be one of the best Las Vegas neighborhoods for various reasons. Firstly, the real estate prices here start as low as around $120K for a two-bedroom house, but they go up to nearly $2M. Currently, the neighborhood has several schools; it boasts well-kept yards, is pet friendly, has easy parking, and has a chilled vibe.

According to the residents, there are a lot of respectful families living there, it’s not overly crowded with shopping centers, and there is some nightlife for those who want to seek it. However, it’s more renowned for having an easy-going spirit. It is great for walking or running since there isn’t too much traffic, which is great for families with young children too.

Additionally, there are also gyms, arts & entertainment venues, cafés, and restaurants to try out.

According to the latest FBI released data, the crime rate for 2019 was 93% higher than the national average. Translated to daily life, a single Centennial Hills resident has a 1 in 21 chance of being a crime victim in a year, so that’s once every 21 years on average, which is quite low.

Green Valley South

Green Valley South is located in the south-eastern corner of Las Vegas, diametrically opposite Centennial Hills, in Henderson. And, it also has a dense suburban vibe, with most homes owned by their residents. It has a population of around 30k, and a median home is valued at around $300K here.

The public schools here are considered above average, and the neighborhood also has shops, restaurants, cafés, and parks. The crime rate here is 29% under the national average, with violent crimes being 68% lower and decreasing!

A Green Valley South resident has a 1 in 57 chance to be a crime victim in a year, meaning once every 57 years on average. This neighborhood is one of the safest places in Nevada, and many sources confirm property management laws are of the highest standard.

Rancho Charleston

Rancho Charleston has some of the lowest real estate prices in the entire area. Prices for houses go as low as $90K, but they also go up to over $3,5M. The rent can also be quite reasonable, as low as $300 but ranging to up to $7K. As far as diversity goes, this is the place to be.

This neighborhood is located at the very center of Las Vegas, but it also keeps much of the suburban feel. Because it is close to everything, it is a popular choice for professionals. Here you can do anything Las Vegas offers, like shopping, gambling, going on a tour of the late Michael Jackson’s house (the Thriller Villa), and much more.

However, with the area being more centrally located, it also has a slightly higher crime rate, with Rancho Charleston’s rates being almost 500% over the national average. Here, a single person has a 1 in 7 chance to become a crime victim yearly. The neighborhood has around 36k residents, over 13K homes, and it is still one of the best places to live in Las Vegas.

Summerlin

As far as community goes, Summerlin is the best there is. It is an area positioned perfectly on the western edge of the city, partially within the city limits and partially within Clark County. It spans more than 22,500 acres of land, most of it parks (230 parks currently), and also a population of around 46k.

However, living in such a premium location has its cost. The average price for a median home is just shy of $400k, while they go up to $19.5M! It has public and private schools, resort hotels, recreational facilities, shops, entertainment centers, and everything one might need for nice city life.

The Money magazine counted Summerlin in their “Best Places to Live in America” list in 2014, and the National Geographic Adventure proclaimed it the “#1 best place to live and play” in 2007. Crime rates are also some of the lowest we’ve seen, at 51% lower than the average rate nationwide and a 1 in 83 chance for a resident to be a crime victim yearly.

Whitney Ranch

Whitney Ranch is one of the best neighborhoods in Las Vegas to settle down in. It is located in the Henderson area, in the south-east, and has a population of around 39k currently. Home prices range from $200K to over $600K, which is in the affordable spectrum, and average rent is a little over $1.2K.

Compared to the national average, this is has a 300% higher crime rate, where a citizen has a 1 in 11 chance to become a crime victim per year, but the rate is decreasing. There are several schools, shopping centers, restaurants, and things to do with your family, while there is still some nightlife to be enjoyed there too.

The City of Henderson

The City of Henderson includes the aforementioned Green Valley South and North, and Whitney Ranch neighborhoods, but also several others like the Macdonald Ranch, Seven Hills, Gibson Springs, and more. It is located 26km (16miles) south-east of Las Vegas Valley and has a population of around 320,000, according to the latest census info.

The city includes Lake Las Vegas to the north-east, which is home to cool country clubs, and there are 62 parks and many trails to enjoy all around Henderson. Most areas of the city are well connected, and people claim you can get to anywhere in the city in 45 minutes max.

It still keeps the suburban feel, and it is safer than any safe neighborhoods in Las Vegas. It was the safest city in America ranked by Forbes in 2018 and 2019, and it has a separate police force from Las Vegas. There are plenty of opportunities for a vibrant social life in the City of Hendeson, from community events to entertainment and culture. It would certainly be a great place for you to call home.

Questions To Ask Your Real Estate Agent

/in Latest News, News /by ramgroupam

Getting a new house or apartment to live in can be an exciting experience. You’re moving into a new living space that you’ll be living in for months or years to come. But for a first-timer, it can also be daunting, as you are doing something you haven’t done before. This is especially true when working with a real estate agent who knows the ins and outs of their trade.

That’s where we come in. We’ve listed below some of the most important questions to ask when selling a house (or buying one) so you don’t have to. These questions to ask the real estate agent cover both the buying and selling of property. So instead of worrying about what to say next, you can pull this article up for these questions to ask when choosing a realtor to buy a home.

Before working with the agent

1. “May I see your real estate license?”

The first question is an obvious but essential question. If they’ve proved their authenticity beforehand, you don’t really need to ask this, but if you haven’t yet, this is one of the most vital questions to ask a realtor when buying a house. There are many real estate scammers out there, and you don’t want to fall victim to one of them right off the bat.

2.“How many clients are you working with at the moment?”

This may seem too personal of a question, but don’t be afraid to ask this. Real estate agents that don’t have clients at all may be a bad sign, whereas those with too many may not be able to dedicate their services to you as well as others. It’s one of those questions to ask when choosing a realtor to buy a home beforehand.

3. “May I ask about the specifics regarding your commission?”

This is one of the most important questions to ask a realtor when buying a house. The last thing you’d want to worry about is your real estate agent’s compensation. As with other industries, real estate agencies vary in terms of their compensation, so be sure to ask before doing business with them.

4.“Have you sold homes in this area before?”

Experience is a vital trait in real estate agents. You don’t want to have your property sold by someone who undervalues it, for example. If possible, try finding an agent who’s worked with properties in the area, so you know they have the knowledge to better work with you.

When buying properties

1.“Could you explain the entire process behind buying a house?”

Here’s one of those questions to ask the real estate agent right away. Real estate agents know the home buying process like the back of their hands. However, you probably don’t. You ask this question not only to see whether or not the agent is legitimate but to also be better informed on what you should expect. Don’t be afraid to go into the specifics of home buying, such as offers. They’re more than willing to help.

2.“When are you available?”

Remember, real estate agents are just as human as you are. Other than working with other clients, they need personal time for themselves. Be sure to ask beforehand when they’re best available for an appointment or house tour. This will also allow you to change your own schedule accordingly.

3.“Why is the previous homeowner selling their house?” (if applicable)

There are plenty of stories where someone buys a house, only to find it infested with rats, ridden with termites, or have a serious ventilation problem. These things aren’t always noticed in a house tour, so you want to ask why the homeowner decided to sell their property. Professional real estate agents will tell you upfront the pros and cons of the property, so this is one of those questions to ask the real estate agent that you don’t want to forget to ask.

4.“Can my (insert equipment here) fit here?”

Depending on your hobbies or professions, you may have specialized equipment that can take up quite a bit of space. Be sure to ask beforehand whether or not the property will be able to fit your equipment in it. This may not be an issue for larger properties, but if you’re on a budget, you’ll need to confirm beforehand.

5.“What are the landlord’s policies/rules?”

Depending on where you live, you may have to abide by certain rules or policies set by the apartment and its landlord. These can range from issues regarding noise, pets, or even garbage disposal. Ask your real estate agent or the landlord themselves to confirm whether or not a certain thing is allowed.

6.“How much of an offer would guarantee the property?”

Just like with most products, real estate properties have varying demands. This is especially true for properties that are found in key locations, such as prestigious neighborhoods or convenient places in the city. There’s a good chance that you’re not the only one looking to purchase the property you’re currently interested in.

If that’s the case, don’t be afraid to ask your agent which offer guarantees the property. They won’t just spout out some exorbitant amount – they’ll give you a high, but a safe, estimate, which will allow you to figure out how much you’re willing to pay for it. If the property’s really worth every penny, you may want to sink in some extra cash to guarantee the property for yourself.

When selling properties

1. At what price would this property sell?

Even without having your property appraised, your real estate agent may have the capability of estimating the price beforehand. They’ll be able to give you a rough estimate based on their knowledge of properties in the area as well as their own intuition. Of course, this varies from agent to agent, but you’ll get a better guess from agents with experience, especially with those who have worked in the area or have sold properties of a similar price range. Knowing beforehand will allow you to plan accordingly, so if you can trust your real estate agent’s intuition, feel free and ask away.

2. How much would properties in this neighborhood typically sell for?

Sometimes, your property may sell for more or less than the average property in the area. Ask your real estate agent the typical price a property would go for in the area and compare it with the estimated price of your own property. If needed, ask what makes your property sell for more.

3. Have you sold homes that cost as much as this property?

This is one of the most important questions to ask when selling a house, especially if you’re selling an expensive property. You want to know if you can trust your real estate agent in handling your property. Now, don’t get me wrong – even if they say they don’t have the experience, that doesn’t mean you shouldn’t work with them. It’s just good to know if your property’s in the right hands, especially if the property is worth a lot.

4. How should I prepare my property for future showings?

Ask your real estate agent what you need to make your property as presentable as possible. You may have already decided on cleaning it, but the agent may know a few extra tips that will make your property even more appealing during showings.

Conclusion

Whether you’re purchasing your first apartment or selling your old house, a real estate agent can really streamline the process for you. By asking the right questions before and after deciding to work with an agent, you’ll be well on your way to either making some good money or settling in your next home. As long as you aren’t afraid to ask your real estate agent, you’re already halfway there.

Top 7 Property Manager Skills

/in Latest News, News /by ramgroupam

Property management is a stable and challenging job that requires a certain skill set. Some people are not cut out for this sort of job. However, if you have the right property manager skills then the job can be rewarding and enjoyable.

In this guide, we’ve explained the top 7 property manager skills. Whether you are going into commercial property management or residential.

Innovative and Flexible Mindset

The world of real estate and property management is changing all the time. You need to be willing to innovate and take a flexible approach to the industry. There may be new applications and software that can make your life easier, but only if you are willing to embrace them.

In a world where technology is changing all the time then being flexible enough to embrace it is one of the key skills for real property management. On top of this, you should be flexible regarding what clients and property owners want. Some owners will take a very different approach to others, and want you to understand their needs.

Detail-Oriented

As a property manager, you will have to manage a lot of different aspects of a lot of different properties. Deadlines, upkeep, and even making appointments and meeting people to show them houses or properties they may want to rent. You need to be the sort of person who is happy to take all of this on, and not let any details pass you by, from ensuring rent is paid to booking the maintenance services for the right time.

The state of the property might also be your responsibility. Real estate and property management involve keeping records, and you might need to keep a very close eye on the state the property is actually in before and after tenants.

Vendor Relationships

Real property management involves a lot of spinning plates. You need to be able to keep track of a lot of different people as well as properties. This includes keeping positive relationships with vendors. You will probably work very closely with vendors such as electricians, cleaners, plumbers, and more.

Ask any property manager and they will tell you that it is not a job you can do without a lot of reliable people to help you, and this includes tradespeople. To ensure that you always have someone to call in an emergency, you should keep strong relationships with vendors. This can be even more difficult if you manage properties across multiple destinations. You can see how it helps to pay close attention to detail.

Transparency

Sadly, a lot of people don’t trust property managers and landlords. Historically, a lot of people have taken advantage of those that need to rent homes rather than buy. There are property managers out there whose ethics are lacking.

In the modern day, this is not something that you can get away with. There are plenty of industry organizations that promote the ethics of landlords and property managers and ensure that the rules aren’t being broken. Each state has its own rules and regulations on properties, and some control rent rates, and the state the house must be in legally, to provide an adequate dwelling.

For all of these reasons, it is a good idea to be transparent with everyone. Only tell the truth and keep everyone in the loop about all aspects of the home. It is far better to tell a potential tenant about issues they may come across and to inform them of all the costs involved with the property, rather than let them run into any surprises and end up being upset or angry.

Proven Operational Procedures

Knowing how to go about things from an operational point of view is vital. A property manager might end up having to do a lot of remote work, and constantly be on the road visiting houses and making appointments with people. That means that you can’t rely on anyone else for the operational procedures.

You need to be able to work independently, and for that, proven procedures regarding property letting, maintenance, and all of the legal procedures around real estate and property management.

If you work within a property management agency then it can be easier to build up these skills, working with someone who is experienced. There are also a number of courses and qualifications in property management which can help you to implement the right procedures.

Having a certain method of doing things can make things a lot simpler for you. If you know the protocol then you will be able to follow it for each property you manage.

Communication Skills

You may have deduced this already from the five property management skills we’ve mentioned.

Think of it this way, if something goes wrong in a property, you might have to speak to a lot of people. The tenants may contact you to tell you about it, then you may need to relay this information to the owner of the property. Next, calling a vendor, making an appointment to fix the issue, and then telling the tenant about it to ensure they can be there. This is all assuming no more issues crop up.

All of this means that you need communication skills as part of your real property management skills. As well as keeping everyone informed of what’s going on in all of the properties you manage, communication skills also relate to how you deal with people. You should be able to stay calm, and not get flustered, and speak to everyone in a respectful and generally upbeat way. You are representing a property management company and the owners of the property, so this means that you need to be professional at all times.

Organizational Skills

It is very easy to fall behind if you are not organized. On top of this, being disorganized when it comes to bills, invoices, and appointments can even cost money. Forgetting to renew an insurance policy or failing to pay an invoice on time can be very costly errors.

If we were to pick out one single skill that is the most important for property managers then the organization may well be that skill. A lot of solo and independent work means that you can’t rely on others to keep everything in order.

As a property manager, you have responsibilities to the owners of the property, as well as the tenants, and you shouldn’t let things go wrong because of simply being disorganized. Managing your diary and your email and telephone communication can be one of the most important things to ensure that you don’t let things slip you by.

Conclusion

Property management is a career that isn’t going anywhere in a hurry. Property owners are always looking for people to help with their needs, managing tenants, or even commercial property.

If you are the kind of person who has a close attention to detail and can stay organized and calm, even in stressful or overwhelming situations, property management might be the ideal career choice for you. You can work on most of the other skills required, such as learning about the industry, but if you aren’t naturally organized and communicative then this is probably not the job for you.

The Distinction Between Real Estate and Real Property

/in News /by ramgroupam

For most people, the terms “Real Estate” and “Real Property” might seem to be synonymous with one another as they are often used to imply the same thing. However, to someone who has a career in professional property management, or someone looking to invest, it is perhaps a good idea to know the difference between real estate vs real property. In addition to this, types of real estate, types of property, and types of commercial properties are also three different subjects that need to be understood independently of each other.

So, what is the difference between them all? What types of real estate exist, and what types of property exist? And, why are all these different terms and divisions necessary for successful real estate and property management? In this article, we will explain the distinctions between each of them. Let’s get into it.

Real Estate vs Real Property

What does the term “Real Estate” envelop?

Real estate, as many people correctly assume, is any physical property or land which includes buildings, but also the area that lies beneath the land and the air above it. The word “real” in the term literally refers to the fact that an asset is, in fact, tangible i.e., physical.

There are four types of real estate, mostly divided according to the types of usage of that real property.

Types of Real Estate:

Residential
Commercial
Industrial
Land

Residential real estate refers mostly to homes, as the name implies, both new and resold. They have several sub-categories, of which the most common is a single-family house/home. Others include townhouses, condominiums, duplexes, co-ops, triple-deckers, quadplexes, vacation homes, high-value, and so on.

Commercial real estate refers to shopping centers, malls, educational and medical buildings, offices and hotels, etc. Even though all types of real estate can be used to generate some income, only these are included in the commercial category, with some exceptions. Types of commercial properties also include apartment buildings even though they are residences because they are used to produce income.

Industrial real estate refers to property or buildings used for manufacturing, like factories, but also warehouses. This includes buildings used for production, storage, goods distribution, and research.

Goods distribution buildings can also fall into the commercial category, but that depends on the way the distribution is handled, as well as location and other aspects.

Land real estate simply means what the name implies – land. Vacant lots, farms, ranches, and all other types of land are included. This means reused, underdeveloped, site assembly, and subdivision land.

What is Real Property?

While real property is used less and a usually misunderstood concept, it actually envelops a broader spectrum than the term real estate or any of the types of real estate. This is because it still does include the “real” part, all the land and buildings, and all of the things mentioned before, but it also includes intangible things, such as rights.

This is the main distinction in the “real estate vs real property” dilemma, that bundle of rights. So, in addition to the land and the buildings we talked about in different types of real estate, real property can include things like rights of enjoyment and usage of that land, like improvements, occupation, control, and more.

No matter what types of property we’re talking about, the bundle of rights includes the following:

The right of possession, which means the right of occupation of the property
The right of control, which includes the right of determining its interests and uses
The right of enjoyment, which is the right of using it without any interference by a third party
The right of exclusion, which is the right to deny use and interest of that property to others
The right for disposing of the property, which means the right to decide if and how it will be sold or given away

Example of Real Property

As it turns out, you can be an owner of different types of real estate while having different real property rights. For instance, a home can have multiple people with the right of possession and enjoyment, but not all can have the right of controlling it or disposing of it.

A good example of real property is when kids inherit the real estate from a parent who is not yet deceased but has given them the right of possession, enjoyment, or control, or all of the above. Let’s say it is a family business for example. The children can use it to make a profit, control many of its aspects (improvements, etc.), but the parents still retain the right to dispose of it and maintain ultimate control.

Real Estate Agents

People who work in the real estate industry are accustomed to the nuances between real estate and real property due to the different branches and aspects of their work. If a person outside of this profession is looking to trade in different types of property, it is recommended they engage a realtor before deciding on the types of real estate investment or trade they will go for.

The type of real estate investment also determines the type of agents you should employ. These include:

Real estate agents, who arrange real estate transactions
Sellers’ agents, which assist sellers in finding buyers, determine the price, and other aspects of the sale
Buyers agents, which help the buyer with the similar, only with the goal of purchasing

Realtors are real estate agents that are members of the National Association of Realtors, which serves the purpose of information exchange about the real estate investment types, sales, purchases, and all other aspects of the industry.

Different Types of Real Estate Investments

/in News /by ramgroupam

Investing in different types of real estate can be thrilling and rewarding. But it takes lots of experience and money before your goal comes to fruition.
A newbie will think that real estate investing is about buying land and structures in return for more money. You know that this is the road to financial independence in your retirement, and there are risks involved. Yes, you are correct.
You might decide that this is your dream career and willing to invest time, effort, and resources to reach your goal.
But what you don’t know is there are myriad types of real estate investments out there.

Getting Started in Real Estate Investment

Before investing in the different types of real estates, practice what experienced investors
do. Do not buy real estate properties under your name, form a legal entity such as a limited
liability company (LLC) and park your investments there. In case something goes wrong your
assets will be protected.

The real estate business is very risky, each type of investment presents benefits and pitfalls.
Take a hard look at the opportunities and weigh it against the risks before adding
into your investment portfolio.

Commercial investors need at least $50,000 in their pocket, but there are other ways to invest if
you don’t have that amount.

Real estate needs a significant investment in time and effort. Fixing a property is hard work and
you have to keep up with regular maintenance. Unless you’ll hire the services of a commercial
property management company to pick up the slack.

If you want to invest consider these five types of real estate.

Commercial Real Estate

Commercial real estate property is leased by businesses or income-generating industries. There are different types of real estates that include a single storefront, restaurant, hotels, or large shopping centers. Commercial spaces have lengthy lease contracts and charge more than residential rentals.

There are five types of properties under the commercial real estate umbrella.

Office

This is the most common type of commercial space covering single-tenant properties to skyscrapers. Class A commercial real estate is usually run by a professional commercial property management company.

Retail

Retail space is a storefront where companies can sell their goods and services to shoppers. These are your banks, clothing stores, fast-food outlets, and strip malls located in urban areas.

Industrial

Industrial properties refer to warehouses and manufacturing sites where products are produced or stored.

Multifamily

Any time a rent space has more than one unit it is classified as a multifamily property but when it is over four units, it falls under commercial real estate. Tenants are a mix of offices, retailers, and home dwellers.

Special purpose

Special purpose properties were built for a specific purpose, and it will be difficult to remodel the property to serve another use. Some examples are airports, hotels, malls, and hospitals.

Residential Real Estate

There are different types of real estate investments, residential renting is a popular investment choice since people are familiar with leasing a property. These are structures such as townhouses, apartment buildings, condos, or houses that are occupied by a person or a family in exchange for rentals. The length of stay depends on the contract, but mostly residential leases in the United States are on a twelve-month basis.

Investing in residential real estate assets can take many forms. It can be renting out a vacant room or to build residential dwellings if you have the patience to manage tenants. Landlords are assured of a monthly cash flow, appreciation of property, leverage when borrowing money, and tax advantages from the derived income.

However, there are hitches, if a residential real estate stops delivering the expected monthly cash flow and appreciation due to market conditions it will be very hard to cut losses and pull out from the venture. Catching a buyer to find value in the property that you don’t see is like finding a needle in the haystack.

There are also house flippers, who invest in residential types of property. These people are experienced estate appraisers, marketers, and DIYers. They buy undervalued properties and sell it in six months. If they cannot quickly vend the property they will be in hot water, their cash is limited and not enough to pay borrowed money in the long term.

Vacant Land

Vacant land, also called raw land, is a property that is unoccupied with no structures or improvements.

Why buy vacant land if you won’t profit from it?

Profit is the least of the worries of an investor with good business acumen. Buying vacant land requires lots of market research especially if you plan to use it for commercial or residential development. It fits someone who has a deep understanding of the types of real estate investments and the rental market. They will not dig deep into their pocket without getting anything in return.

Or they will just let the raw land sit and appreciate, and sell it at the proper time earning big profits. Surely, the property was bought at a price cheaper than developed land and it is in the path of growth. They don’t have to go through the headaches of setting up structures and worry about financing, maintenance, ROI, cash flows, and non-paying tenants.

REITs

There are myriad types of real estate investments, but it mainly falls into two classifications. Owning land, residential, and commercial types of properties are called physical real estate investments, and investing that don’t need possession of physical property like real estate investment trusts (REITs).

You can invest in shares of hotels, hospitals, office buildings, and malls on the stock exchange. Through REITs, you are expanding your real estate investment portfolio without facing the risks of directly possessing real estate.

Investors are assured of attractive dividends since REITs are mandated to give shareholders at least 90% of their taxable income every year.

In case you need money, REITs are liquid real estate assets that can be sold on the stock exchange.

Single-Family Residence

Also called single-family detached, is a stand-alone house with a lot that is good for one family.

Unlike condos, townhouses, and multifamily types of property, a single-family residence is built on a piece of property with no shared roofs and walls. The residents will have more privacy since it has some distance from neighbors. It comes in different styles and has its own set of utilities that are not shared with other residents. You can customize your garden or carry out remodeling activities without intruding on your neighbor’s privacy or space.

If you are a capitalist considering a single-family residence from different types of real estates think about the income potential. You will earn more with a multifamily setup. You have to hire help for maintenance and repairs or DIY.

How to Calculate Commercial Property Value?

/in News /by ramgroupam

Calculating commercial property value is a notoriously tricky thing to get right. Fortunately, there are a few different tricks from the real estate industry that are used to make such calculations more accurate and a little easier to use.

By its very definition, the commercial property value is nothing more than the price paid for the purchase of a given property, agreed upon by the seller and buyer. In economic theory, this value converges precisely at the point where supply and demand collide. In plain words, the value of a certain property is largely determined by the market.

Yet, in the real world, things are not always quite so simple. This is because there are many things that can affect the willingness of the buyer to meet the set price, including but not limited to their motivation to buy that set property, the that takes place, the condition of the property, and a myriad of other factors.

This is why the price agreed upon, and the final price when the sale happens is taken as the final commercial real estate value for a particular property. But, to better calculate this and to have more leverage in negotiating prices, long ago the real estate wizards came up with the tools to help estimate/calculate the property value, such as the Net Operating Income (NOI), and the Capitalization Rate (Cap Rate).

NOI – Net Operating Income

Since we are determining the value of a commercial piece of property, it is a good idea that we take a look at how business was going before, isn’t it? Thus, we take a look at the real black and white picture of the profitability of commercial real estate.

We take all of its income made during a set period and subtract all of the necessary operating expenses. Simply put:

Gross Income – Operating Expenses = NOI

There is another term used here – EBITDA, which literally means Earnings Before Interest, Taxes, Depreciation, and Amortization. All of these aspects are either short or long term figures we need to factor in calculating commercial real estate value.

Cap Rate – Capitalization Rate

People who are looking to purchase a specific commercial property would often want to look at its capitalization rate. This is because it shows, in a single percentage figure, what is the expected rate of return on their investment after purchasing it.

The capitalization rate is calculated again from the net operating income of the commercial property, but this time that figure is divided by the asset value of the property and expressed as a percentage. It is one of the most important figures in real estate management, obviously, and agents often sort entire building areas by their estimated cap rates.

In plain words, the cap rate will show the person who wants to buy the commercial property the rate of return for their invested money, based on NOI and the price. If you don’t know the cap rate for your building, for instance, just look at the cap rate for similar buildings in your area.

The Price

So, once we have all of the figures and formulas required, we can do the calculations with no problem. The capitalization rate formula is as follows:

NOI / Current Market Value = Cap Rate

This means that if the NOI for a given commercial property is $120,000 and it was sold for $1,000,000 bucks in the last six months, we get that the cap rate for that property is 12%.

But, let’s say you own a commercial property, and you want to calculate the price for it, perhaps for potentially selling it. As an owner, you should have access to your NOI (gross operating income). However, since there was no sale of the property in the last six months or even years, what you need to look at then is the cap rate for your area.

Then, you would again have two out of 3 variables known, and the calculation is a simple one.

NOI / Cap Rate(divided by 100) = Price

If we take the same example as before, where NOI was $120,000 and the cap rate for your area is 9%, the calculation would go as follows:

$120,000 / 0.09 = $1,333,333 (approximately)

The three main approaches

When it comes to calculating commercial real estate value, there are three main approaches you can take, these are:

Market value approach

The market value approach takes into account the recent sales data of properties sold in the surrounding area. This is done by assessing the final sales figures of comparable properties which then sets a precedent for fair market value.
These are all handy tools for commercial property management companies as well as those looking to both buy and sell such properties.

Income approach

This approach uses the revenue that the property generates to help estimate fair value. It’s calculated by dividing the net operating income by the capitalization rate, as we have shown above.

Replacement cost approach

Instead of focusing on the property’s ability to generate an income, this approach looks at how much the building would cost if it were torn down and rebuilt again from scratch. This requires calculating the entire cost for the replacement of each part of the property and takes into account the value of the land surrounding the building.