This is a very common question prospective buyers ask, hence the explanation here. The answer is simple. Are you (buyer) going to pay their mortgage? No! So you want to see the operating expenses. The gross income less operating expenses before any debt service (mortgage) or owner compensation equals NOI (net operating income). And from …
Why don’t I see the Seller’s Mortgage on the Profit & Loss? Read More »
So many financial terms….do you understand what you’re looking at? Your first step, other than working with me as your investment specialist, is to understand the metrics. GRM: GROSS REVENUE MULTIPLIER DCR: DEBT COVERAGE RATIO 8 CAP: 8% CAP RATE COC: CASH ON CASH ADR: AVERAGE DAILY RATE RevPAR: REVENUE PER AVAILABLE ROOM OCCUPANCY (ANNUALIZED …
What about Financing Metrics?Cap Rates, GRM, DCR, RevPar, ADR, COC, oh my! Read More »
The rates we have been seeing in hospitality lending in Maine for years have been relatively and historically low for commercial loans. However, they keep changing very quickly. Contact me to discuss current rates.
Not everyone who is a licensed real estate agent is a Realtor®?
A Realtor® is a licensed real estate salesperson who belongs to the National Association of Realtors®, the largest trade group in the country. Realtors® are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics. Some Realtors® are brokers, while some are associate brokers or sales agents. These are varying levels of education, licensing and often responsibilities.
And hospitality ‘Consultants’ not licensed in the state of Maine are not held to any standards the way we are here as licensed Realtors® in Maine, where consumer protection is paramount.
