Our team creates customized investment analysis for various asset classes such residential single or multifamily operated as long term unfurnished or short term furnished rentals, commercial offices, retail spaces, industrial warehouses, storage facilities, and more.
Various investors have different objectives and risk tolerance. Some opt to spread their investments across different classes and geographical areas while others prefer property types they are most familiar with and perhaps located within driving distance. Some lean towards steady monthly income whereas others choose asset appreciation or value creation through value-add strategy or adaptive reuse.
Staying up-to-date with local and macroeconomic drivers is an imperative factor in our ability to correctly underwrite investment opportunities for our clients. We work with various banks and mortgage brokers who keep abreast of any upcoming changes to interest rates.
For existing income producing properties we review the in-place operating statements and assess any potential future adjustments due to a property tax reassessment, renegotiating 3rd party contracts, modifying payroll and repairs, adding new debt and of course fine-tuning the revenues.
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Thinking of a ground up development? Depending on a market cycle, ground up development can either make you or break you especially if you are a novice developer or not familiar with the local market.
Given a typical length of real estate development, many factors must be considered to ensure the project success:
- Land entitlements and permitting can take on average 6-12 months depending on the size of the project, a municipality it is located in, and any zoning variances sought.
- Length of construction varies greatly but a majority of multi-unit residential and commercial developments fall within 12-24 months range.
- Lease up – developers of commercial offices buildings and shopping malls typically pre-lease spaces to anchor or major tenants either during construction or before construction starts at more favorable terms in order to secure financing. For multifamily properties the leasing process usually commences a month or two before project’s anticipated Certificate of Occupancy. Depending on the size of the project, market conditions, and leasing velocity, a path to building stabilization (occupancy level) can vary greatly.
Depending on the project scope, we can recommend a number of architects, engineers, and general contractors with whom we have done business in past.
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A Broker Price Opinion also called BPO is a property valuation performed by a real estate broker typically limited in scope than a full appraisal which can only be created by a certified appraiser.
Although BPO’s can be created for a variety of clients, a majority of them are generated for banks to value their REO portfolio. Appraisals are more expensive and take longer to prepare hence banks rely on experienced real estate professionals to objectively derive valuations of residential and commercial assets.
This valuation method generally utilizes adjusting data of recent nearby sale comparables, at times when no sale comparables are available, it employs income and/or asset replacement methods.
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Any of our residential or commercial representation services can be performed with Biscayne Real Estate acting as your adviser.
We can have a role of transaction advisor, using our expertise to ensure a transaction closes efficiently or advise just one of the participating parties.
The main difference between representative and advisory services is the compensation structure. As a representative our compensation is structured as percentage of real estate transaction (sale price or lease amount) whereas as an advisor we bill our clients based on the time spent just as your legal counsel.
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