Buy and Sell Your Investments With Confidence

See more details on our process by clicking the sections below

Consultation

During your consultation, we will discuss your business objectives and goals, and conduct a comprehensive analysis of your commercial property or dig into the details of your search. This involves evaluating the specifics of your direct needs and goals, and even taking a tour of your property if you are looking to sell. We will also share our marketing and search strategies with you and recommend referrals to address any areas of concern. Once we determine a listing price or purchase limit, we will thoroughly review all required representation paperwork with you to ensure you understand the purchase and sale process, including our variable commission rates for listing commercial assets. Our team is committed to transparency and clear communication to help you make informed decisions.

Valuation Method

We understand that accurate valuation of investment properties requires a thorough understanding of the property's gross income, adjusted gross income, and operating expenses. To provide our clients with an accurate valuation, we assist them in analyzing their property's potential gross income (PGI), which is the maximum income the property could generate if it were fully occupied and leased at market rates. We then adjust the PGI to calculate the effective gross income (EGI), which takes into account any vacancies, concessions, or other factors that may impact the property's rental income.

Next, we analyze the property's operating expenses, which include all the costs associated with operating and maintaining the property, such as property taxes, insurance, repairs and maintenance, property management fees, utilities, and other expenses. By using historical operating expenses, we can estimate the property's future operating expenses, which is important for calculating the property's net operating income (NOI).

The net operating income represents the income generated by the property after deducting all operating expenses. This figure is essential for determining the property's value using the capitalization rate (cap rate), which represents the expected rate of return on the investment. The cap rate is typically derived from comparable property sales, and it is adjusted based on the property's condition, location, and other factors that may impact its value.

While the income valuation approach is a reliable method for valuing investment properties, we understand that other factors may also impact the property's value. As a result, we may use additional valuation methods or adjust our calculations to account for these factors. For instance, we may conduct a comparative market analysis (CMA) to compare the property to similar properties in the market or use the cost approach to value the property based on the cost of replacing it. By considering all these factors, we can provide our clients with an accurate valuation or list price that reflects the property's true value in the market.

Financial Review and Modeling

Once we have determined the value of the investment property using our income valuation approach, we can utilize our financial modeling to create proformas. A proforma is a financial statement that estimates the potential financial performance of a property over a specified period, usually one to three years, and considers items like future capital expenditures, repairs and upgrades. By creating proformas, we can help our clients make informed investment decisions and understand the potential return on their investment.

Proformas can also be useful for securing financing or attracting potential investors. They provide a clear and concise summary of the property's financial performance and can help investors evaluate the property's potential return on investment. Additionally, proformas can be updated regularly to reflect any changes in the property's income or expenses, allowing investors to make informed decisions about their investment.

In addition to helping investors make informed investment decisions, proformas are also used to create offering memorandums for listing investment properties. Offering memorandums are marketing documents that provide potential buyers with detailed information about the property, including its financial performance, market analysis, and investment potential. Proformas are an essential component of the offering memorandum, as they provide a clear and concise summary of the property's projected financial performance, which is a key factor in attracting potential buyers.

Overall, the implementation of proformas into the creation of offering memorandums and for conducting a thorough investigation into a potential target property's short or long-term investment potential is essential for providing investors with the necessary information to make informed investment decisions.

Pre-Offer to Post Closing

The Gaulden Group offers a wide range of investment property services that cater to both buyers and sellers. Our approach begins with a thorough valuation of the property, which includes analyzing its gross income, adjusted gross income, operating expenses, and determining its fair market value. By utilizing our financial modeling and valuation services, we can provide our clients with a list price or accurate valuation that truly reflects the property's worth. To help our clients make informed decisions, we provide them with detailed financial projections and professional referrals to evaluate the property's condition and potential returns.

Moreover, we guide our clients through the entire process, from negotiating the terms of sale to conducting due diligence, obtaining important documentation, and preparing them for closing. Our commitment to providing exceptional service ensures that the buying and/or selling process is smooth and efficient from start to finish. Our comprehensive approach to analyzing investment properties provides clients with the necessary information to make informed decisions, ensuring that they receive unparalleled service.

Stabilization

At The Gaulden Group, our commitment to providing comprehensive investment property services extends beyond the closing process. We offer property stabilization services that help our clients maximize the potential of their newly acquired property. Our team assists with filling vacancies by creating effective marketing strategies and utilizing targeted advertising campaigns to attract qualified tenants. We also provide guidance on capital expenditure placement, ensuring that our clients invest their resources in areas that provide the highest return on investment.

In addition to that, we help our clients with drafting leases and negotiating any changes to current tenants to ensure that the property's rental income is optimized. We analyze the property's expenses and make suggestions for improvements, ensuring that our clients get the most out of their investment. Our expertise in the local market and tenant relations allows us to offer these services seamlessly, ensuring that our clients receive maximum benefit from their investment. We aim to help clients optimize their investment property's potential, ensuring long-term success and profitability.

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