The Louisiana Real Estate Commission approved Louisiana Commercial Realty's commercial property workshop to train real estate agents on the complexities of commercial property. The workshop is approved for continuing education credits which are required by the commission each year in order for a Louisiana agent to maintain their license. Chapters of our workshop teach commercial real estate agents and investors what they need to know about each of the 6 major types of commercial property.
The workshop dives deep into the motivations of buyers, sellers, landlords and tenants. Each of these 4 stakeholders has a different objective so a commercial real estate agent must quarterback all the various entities and tactfully guide the decision-makers, government authorities, bankers, appraisers and property owners, who often conflict when interacting with each other.
The workshop also covers one of the most misunderstood features of commercial real estate: how to value property. We spent years writing appraisals for two of the top firms in New Orleans, so we understand appraisals are only meant for a bank committee to justify loaning money and have little to do with a price at which a property can be sold. The most accurate method of determining a market price for commercial properties that produce rent income is to apply a Capitalization Rate to the Net Operating Income. For example, if a property produces $85,159 in income (revenues less expenses) you would divide that by a 7% Capitalization Rate. This means a buyer should, at most, be willing to pay $1.2 million for that commercial property.
Commercial real estate agents and investors need to be proficient in using technology to determine the best location for their business. Normally agents or investors only know about demographics, including population, income and age; however, finding successful locations requires knowledge about how nearby residents spend their money. This research depicted in the table helps businesses know how residents within a 5 mile radius spend their money. In this example, residents spend $5,591,611 on sporing goods but there is no sporting goods store in the area. The workshop details how to get valuable information to find the perfect location for a business.
We have 20 chapters in the commercial real estate workshop for agents and investors who want to be proficient in commercial property, so contact us for locations and times.
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