Comments on: Vacancy and Credit Losses: Unlocking a Property’s Potential

By: Kyle Koller

Kyle Koller — Thu, 29 Oct 2009 19:36:46 +0000

Dave– Accounting for credit losses has a lot to do with understanding the subject property’s history, and of knowing your specific demographic area. In the end, it is only an approximation. However, understanding why and how a potential investment property’s vacancies and credit losses are what they are, then you can more effectively plan your analysis.

Jim- the office can absolutely be an income producing unit, or a non-income producing unit that you cover under credit losses.

By: Jim Wineinger

Jim Wineinger — Tue, 27 Oct 2009 04:37:57 +0000

What about the “office”? This could be an income producing unit even with an off-site management company.

Do most also consider this credit loss or an necessary expense to prevent credit loss by providing an convient place for payments to be made?

By: Craig Grella

Craig Grella — Mon, 26 Oct 2009 23:51:01 +0000

Most people don’t figure these factors into their analysis.
Also, most banks will factor vacancy and credit loss into the paper underwriting.
Good article.

By: Dave Sharp

Dave Sharp — Mon, 26 Oct 2009 20:22:30 +0000

Hey Kyle – How do you typically account for your credit losses in advance? Do you do anything other then to plan for vacancies?

By: Liz

Liz — Mon, 26 Oct 2009 16:54:11 +0000

Good explanation and one everyone should understand who deals with multi-family properities.San Antonio Real Estate