Tag: Commercial Real Estate Reporting

The Top 8 Real Estate Reports for Property Manager to Client Reporting

Post author By Jen Tindle
Post date February 29, 2024

Do you ever hear that voice in your head saying, “Did I send the right information to my client? Was it enough? Or was it too much?” Multifamily and commercial real estate managers have way too much on their plate to be worrying about client reporting. That’s why I’m writing this post. AND it’s why I created a free whitepaper with in-depth instructions. By knowing what to report, you can press the mute button on all those voices in your head. Today, I’ll show you the top 8 real estate reports for property manager to client reporting.

The Top 8 Reports for Property Manager to Client Reporting

First, review the contract that you signed with your client. Make sure that you include all reports identified in the contract in your reporting package. I will review the top 8 reports in detail, but if you don’t abide by the contract, then you may find yourself in a heap of trouble.

You should send your reporting package no less than monthly. In each month’s report, you will include up-to-date information based on the most recent month. You may include some year-to-date and period-over-period metrics, which I will describe in the whitepaper. Regardless of the details, you must keep your clients updated on your work at least once a month. And that’s the minimum! If you want to go above and beyond, you may want to provide updates on a weekly or bi-weekly basis.

In every reporting package, you absolutely must include your commentary on the property’s performance. Did you sign an incredible new tenant? Or if managing a multifamily property, did you crush your revenue targets while maintaining high occupancy? Every interaction with a client is an opportunity to sell yourself and your firm. Now is not the time to be bashful! Share how amazing you are and how your incredible efforts paid off for your client.

If you haven’t already, download my free whitepaper on the top 8 real estate reports for property manager to client reporting.

SHAMELESS PLUG ALERT: If you need more help, send me a note or book a consultation with me. If this blog post and white paper helped you, feel free to buy me coffee.

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Tags Commercial Real Estate Reporting, CRE Reports, Key Reports for Property Manager Client Reporting, Multifamily Real Estate Reporting, Real Estate Client Reporting, Top KPIs for PMC to Client Reporting, Top Reports for Property Manager Client Reporting, Top Reports for Property Manager to Client Reporting, What Reports Should Commercial Manager Send to Client, What Reports Should Multifamily Manager Send to Client, What Reports Should PMC Send to Client, What Reports Should Property Manager Send to Clients

Accounting Asset Management Finance Investor Reporting

Do You Know The Most Common Commercial Real Estate Valuation Methods?

Post author By Jen Tindle
Post date January 4, 2024

Firms often choose one of three common real estate valuation methods for fair valuing their properties. Do you know what they are? If not, you should.

The most common real estate fair valuation methods include the income approach, sales comps, or the bid on value (BOV) method. Most opt for the income approach, which gives you a clear estimate of the specific investment’s value based on actual net operating income and recent sales.

The Income Approach

The income approach involves three crucial steps:

Projecting Future Net Operating Income: Start by creating a discounted cash flow model to predict the net operating income (NOI) for the next 12 months. NOI, not to be confused with net income, is the linchpin of real estate valuations. It encapsulates the property’s cash flow by considering operating revenues and expenses.
Determining Market Cap Rates: You must gauge the specific investment’s market cap rates. Cap rates, or “capitalization rates”, are typically calculated as the sum of forward 12 months’ NOI divided by the property’s purchase price or valuation. Cap rates differ greatly by market, property type, vintage, and more. You must research each property’s cap rate and consult third-party data sources for accurate, recent, and property-relevant cap rates.
Calculating Property Value: Armed with NOI projections and cap rates, you can unravel the property’s true value. Divide the investment’s projected 12 months’ NOI by the market cap rate, and you’ve got the value of the property if it were to sell today.

Sales Comps

If properties sold recently near yours, then you could argue that your property would sell for around the same price. That said, you need to ensure comparability of properties via:

vintage,
construction,
size,
composition, and
other reasonable forms of comparison.

Typically, firms will gather as many recent comps (comparable sales) as possible. Then, they will divide each purchase or sale price by the property’s square feet, units, beds, etc.

Next, they will average the purchase price per square foot, units, beds, etc. and then multiply it by your property’s square foot, units, beds, etc. This allows you to calculate your property’s relative value.

Finally, this valuation method is tricky not because of the math, but because many states are what’s called “non-disclosure” states. In these states, parties to a real estate sale are not required to disclose price information. That makes accessing recent sale comps challenging.

BOVs

Another common real estate valuation method is BOVs, or broker opinion of value. I rarely see this method used in isolation to value a property. Normally, you request BOVs to support the sales comp method of valuation or your income approach valuation. That’s because a BOV is exactly what it sounds like: a broker’s opinion of your property’s value. Most brokers will provide you with a higher-than-actual BOV to entice you to sell. As such, it’s not considered as reliable as the other two valuation methods.

Great! We’re done now, right?

Not so fast.

Get the Full Details on Real Estate Valuation Methods

Want to learn more about real estate valuation methods? Amazing! You’re not alone.

I wrote this free white paper for you. Take it, expand on it, and let me know your feedback.

(Put the price as $0 and then select “I want this!” after clicking the button below. Of course, if you want to buy me a $5 coffee, I won’t say no…)

I hope you use your real estate valuation methods knowledge to make improve your valuations. Let me know if you have any questions or edits. I always love hearing from you.

Accounting Asset Management Investor Reporting KPIs

How to Prepare Real Estate Investor Reporting

Post author By Jen Tindle
Post date December 20, 2023

It’s that time of year. You need to prepare your real estate investor reporting. Where to begin?

Investment structures and investor composition drive private equity real estate firm’s reporting. For example, the SEC requires certain filings based on your investment structure. Large, institutional investors require quarterly and annual reporting. This is typical regardless of whether they invest in a fund or syndication.

Recently, that reporting has expanded beyond financial projections and operations. Now, it often includes environmental, social, and governance (ESG) data. Many also include diversity, equity, and inclusion (DE&I) data.

Required investor reporting will likely continue to expand over time.

Beyond Financial Statements: Real Estate Investor Reporting

Most of you could guess that you need to prepare financial statements for your investors. And loads of you probably know that you also prepare capital account balance statements by investor.

What you may not realize is that most successful real estate firms provide far more than the minimum required reporting.

Investors LOVE transparency. The more information you can provide on their investments – while still making your firm look excellent – the better.

Get the Full Details on Investor Reporting

Want to learn more about real estate investor reporting? Amazing! You’re not alone.