Why don't you publish simple definition s of the short abbreviations used by commercial realtors like IRR .

Like irr or cap rate
In Property Management - Asked by Arthur s. - Feb 15, 2011
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Phillip B.
Broker/Agent
La Jolla, CA

Most commercial brokers, including myself, use IRR, CAP Rates, FMRR and other tools as a way of comparing commercial investments. However, given the current market conditions, other factors such as cost per foot, redevelopment costs, local market conditions and financing alternatives need to be given consideration. I have attached 2 links for you to view. If you have Excell on your computer the formulas and instructions are included.
Remember, these are only tools for comparison. I have seen projects sell at a 4% CAP Rate in a down market to a buyer who can hold for a long period on the belief that the market will come back over time. I have also had clients from foreign counties purchase very low CAP rate properties because of their belief that USA real estate is a better alternative to other investments they could make (bonds, stocks, investing in their own countries).
Phil Bonham CA DRE #804772. ICON Asset Group.

Feb 16, 2011
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Rob B.
Chandler, AZ

Arthur.... Then you would ruin all the fun of people constantly writing the blog for definitions. However, if one is serious he or she can find a ton of definitions by researching the many books written about commercial real estate that are sitting on shelves in libraries or in major book stores. There is also the Internet that has more information than you may ever want to pursue, or need. But, the best way to really learn the definitions are to find a good mentor if entering the commercial real estate field as an agent; or find a good mentor if entering the commercial real estate field as an investor. The role of the mentors is these two special areas are a bit different. In one the mentor is going to help you function successfully as an agent working under a prescribed broker. In the other the mentor is going to help you make good decisions on what to buy, where to buy, when to buy, how to price and how to buy. Both mentors can be extremely valuable to a serious seeker of knowledge in commercial real estate. Good luck Arthur.... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Feb 17, 2011
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