Woodyard Realty BLOG

Small changes add up to bigger value!

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Does your management staff fully understand how small changes in expenses, occupancy, and delinquency can dramatically impact the value of your property?

Not only can it effect the value of your property, but it could affect the amount of loan you can get on the property. 

Quick example:

The appraiser will then apply the appropriate Capitalization Rate to that Net Operating Income to indicate the value of that particular property.

So, in the example above the NOI was $723,565 and the rate of return required by investors was 6.5%.

Then the value would be around $11,131,769.

Now lets say the management staff works hard and reduces expenses, improves collections, and the NOI goes up to $958,100. Now your property is worth $14,740,000!

Therefore, small changes can dramatically effect the Value. 

Let us know if your staff would like a one hour or less presentation on this subject to help everyone understand the impact of small changes!

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cityCURRENT and Brittany Hodak

cityCURRENT is a Memphis organization that connects businesses with community to power the GOOD and foster purpose-driven relationships that lead to new opportunities for collaboration