So what’s the next step? Here’s the process:
First, give me a call or shoot me an email and let’s have a conversation about your goals and what you want to accomplish. I want to fully understand your situation and make sure I can help you. I’ll need to know some basic information about your building like number of units, unit mix, current rents, parking, expenses, and the current condition of the building.
Once I have this information, I’ll start the research to determine a value range for your building. I’ll pull recent sales comps in your area and enter the info on a spreadsheet. I am looking to determine averages for certain data:Price Per Unit, Gross Rent Multiplier, Cap Rate, and Cost Per Square Foot. Once I have averages for each data point I can compare those numbers with your building to come up with a high and low price range.
Once I have a value range determined I will have my escrow officer prepare a seller’s net sheet for you to review. I want you to know exactly how much cash you will walk away with if you decide to sell.
At this point if you decide that I am the right broker to handle the sale of your building and we have discussed and agreed to a listing price, I will prepare the listing paperwork so I can get started with the marketing materials and getting the property on the market.
Here is what you need to supply me once we have signed the paperwork.
1) Rent Roll
2) Copies of all tenant rental agreements
3) Copies of any service contracts including trash and laundry
4) Names, phone numbers, and email addresses of all tenants
5) A list of the building’s annual expenses
6) A copy of your mortgage Statement (if you have a loan)
Here what I will be doing to launch your building.
1) Send a letter of introduction to the tenants
2) Arrange for interior unit inspections with the tenants
3) Arrange a termite inspection
4) Arrange a retrofit inspection (smoke detectors, gas shut valves, etc.
5) Pull the building permits and Certificate of Occupancy.
6) Order a Preliminary Title Report
7) Shoot all videos and photos
8) Prepare a professional Income and Expense Sheet
9) Prepare a marketing brochure
10) Prepare Agent Instructions on how to submit an offer
11) Prepare the tenant estoppels
12) Enter property in the Multiple Listing Service
13) Enter property in Loopnet.com Commercial MLS
14) Enter property on my website at DerrickRuiz.com
15) Email a marketing package to my investor database
16) Email a marketing package to my commercial broker database
17) Arrange a Commercial Mortgage Quote for prospective buyers
18) Order a For Sale sign
Upon the launch of your building, your property will be placed in the MLS, Loopnet.com, and various real estate websites. All of the important data that an investor needs to evaluate your building will be readily accessible and downloadable: The rent roll, and income and expense sheet, the marketing brochure, leases, inspection reports, preliminary title reports, commercial mortgage quote, photos, and videos.
What I want to do is to make it easy for an investor or a broker to find your building in the MLS or online, see the photos and watch the video, and download and review all of the important data that an investor needs to make a decision. What slows things down and makes it difficult for a buyer’s agent is not being able to reach the listing agent to ask about the building and not having access to all of the data. Many agents are not easily reachable on the phone and do not provide high quality downloadable data about their listings.
Once we have offers coming in, we will review them and I will make recommendations on which ones to counter and what terms to put in the counter.
By the way, all of the documents you will need can be found on the document section of my website.