I'm working with a couple who are retiring and selling off their portfolio on possibly buying one of their final properties. I've run my numbers and have some a couple different offers ready, but I'd like to cross check my numbers with recent comps for properties of this size in the area before I send anything along.
I'm curious if there are ways that others are getting finding commercial comps?
I don't have a RE broker in place, as this is an off-market deal. I'm planning to hire a lawyer to iron out the contract.
Would love any thoughts you all have.
I've been working on this most of the day. Here's what I've found: I can search for completed multi-family listings on Crexi. While they don't show any information about the property, you can usually find the property address. This allows me to then search for it in the county tax records and find the sale price.
There may be other ways, but that's what I've discovered. Let me know if you have a better method :-D
@Dan Cumberland a 12 unit property is considered a commercial building and therefore evaluated differently.
I'll save some time and just link to this great article which will tell you how to evaluate a 12 unit apartment complex.
Thanks for the reply Dylan. I'm aware of the differences and how to run the numbers. This article gives a nice overview though.
I'm asking about comps because that is one of the methods used for commercial multi-family appraisals— at least in this area. From what I've seen, they typically consider both the income of the property as well as the property value compared to other recent commercial multi-family sales. While I know what my numbers tell me about the investment, I'm looking to validate them against what bank's appraiser is going to do— as well as build a case for my offer to the seller.
Does that clarify?