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28 contributions to Commercial Real Estate 101
Actual vs Pro Forma Financials
Most broker Pro-forma* is too ideal! It anticipates near 0% vacancy, high rents, no repair costs, little cap-ex, perfect management, etc. ONLY buy based upon present numbers!!! *Compare Pro-forma side-by-side with the T12, Rent Roll, P & L, etc. To evaluate and get estimated purchase values from Pro-forma only information do this process: Avg rent X Units X 12 = Gross Rent. Gross Rent X 0.90 [10% vacancy] = Effective Gross Rent (EGR) EGR X 0.55 (45% Expense ratio) = NOI. [If under-performing use higher vacancy and expense ratios.] NOI á Market Cap Rate range** = Market value range [use upper and lower figures, higher cap rate range => more conservative property values] Market value range [same as ARV] X 0.7 - repair estimate = Maximum Acceptable Offer (MAO) - wholesale fee. **Use lower and higher cap rate range to get MAO range, point out property deficiencies [high vacancies, high expense ratio, low rents, and needed repairs] to seller, and negotiate toward lower MAO while maintaining cash-on-cash target.
1 like • Oct '25
Pro forma numbers are great for the Broker/Seller but they are basically a fairy tale. You are absolutely spot on to use actual number that can be verified. Pro Forma data make's A LOT of assumptions. I have a '67 stock GTO that's worth 20,000 but IF you can upgrade the .... it would be worth 30,000 so you should make an offer based on the possible future value after you have made the upgrades. Lots of info but I would say no to Pro Forma valuations when calculating an offer price.
0 likes • 16h
@Eve Bennett Hi Eve. You made a good choice when joining. There is excellent training and the people here are very helpful. Nice to meet you.
Real Estate attorney in Arkansas
Please list a name and contact information for real estate attorneys in Arkansas.
0 likes • 6d
Not responding directly to anyone but if I recommend someone to you, it may be the the totally wrong fit and relationship. I would approach it the old fashion way with the help of AI. Write a prompt for what ever chat box and be specific about what you are looking for in a Real Estate Attorney. Are they investor friendly is a start but very generic and creative financing might get you in the ball park. "Provide me with a list of 15 Real Estate Attorney's that have experience with the Foreclosure process in Benton County Arkansas. Create a rating system and explain the criteria used for your analysis. Provide as much contact information for the person or persons in the firm that will be the most beneficial for me to reach out to." Then Call The List and see if it's a fit. Finding that agent, attorney, title office that you are establishing a relationship with is Priceless.
🚨 Looking for a buyer? Read this FIRST.
Let me save you from a mistake that quietly kills deals. You finally find a deal…but it’s not a clean little apartment building. It’s: An RV park A mobile home park Some weird mixed-use setup And your first thought is: “Who the heck is going to buy this?” That’s where most people freeze. Here’s the truth: 👉 Unique deals don’t need MORE buyers… 👉 They need the RIGHT buyers. And those buyers are not on your generic list. They’re hiding in very specific places 🔍 Where to Find Buyers (That Actually Close) 1. Facebook Groups (Goldmine) 2. LinkedIn (Underrated Weapon) 3. THIS Community (Don’t Sleep on It) 4. Reddit (Yes, Seriously) 5. Targeted Email Lists The Real Lesson: Most wholesalers fail because they do this: Send niche deals to generic buyers. Pros do this match niche deals to niche buyers And when you do that? 🔥 Deals move faster 🔥 Buyers chase YOU 🔥 Spreads get bigger Want the full playbook on how to use these sources? Drop BUYER below and I’ll send it over.
2 likes • 12d
Buyer Always looking professional insight
Homeless for the holidays...
I'm buying an RV park in the Ozarks and the seller insists the current manager (who's quiet quit) has the right to stay on the property for 60 days past closing and remain in her role and be compensated to manage the park. Let's hear y'alls candid reply to the broker...
Poll
7 members have voted
Homeless for the holidays...
4 likes • Sep '25
Hi Brad, I didn't vote because I would want more information about the situation. Do you have another management team ready? Do you plan on having on-site management going forward? Is the current manager doing a good job or is that part of the problem. If it's the latter I might agree to a compensation package that would allow them to stay and receive the two months pay package and insist they are removed from management of the property. If it's going to be a deal breaker you will have to decide if you are willing to walk away or work something out.
3 likes • Sep '25
@Brad DeGraw It's a business but there is always the personal or emotional side of things. I can see a scenario where the owner has a manager for 15 years and knows them on a personal level and feels a obligation to help that transition as much as possible. Glad you were able to work it out.
Hustle. Save. Sacrifice. Lose.
So many people spend decades chasing “someday.” They hustle, save, and sacrifice, hoping that the system will eventually reward them. But the truth? The system wasn’t built for your freedom. That’s why I created the Set for Life Virtual Summit. To give you the same roadmap that’s helped everyday people break free. 👉 Vera struggled for a year with nothing to show… then landed two apartment deals in two months. 👉 Dennis was a truck driver who closed his first deal in 30 days. 👉 Rachel went from $30K in debt to a $3M net worth in just 5 years. These aren’t superhuman stories. These are people who started exactly where you are — but with the right guidance, they changed everything. This summit isn’t just about real estate. It’s about rewriting your story. If you’ve ever thought, “What’s next? How do I finally get ahead?” — this is for you. 📆 September 17–18. Grab your FREE ticket here. Drop a 🙌 if you’re joining us. .
0 likes • Sep '25
@Brian Kuehmichel Great info Brian check this out for more information https://www.skool.com/commercial-real-estate-101/about?ref=c6ad6acd4ebd436ba997e1e8153d9b8e
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Gary Bergeron
4
62points to level up
@gary-bergeron-3739
Maintenance Director, grandfather soon to be retiree

Active 12h ago
Joined Feb 17, 2025
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