Evaluating Los Angeles Commercial Real Estate

Once a few properties of interest are located, there are several steps in evaluating or appraising those properties to establish if there is purchase potential .

1. Gather information – the sellers will provide a description of the property, including floor sizes, number of rooms, tenancy, income and expenses and any other information you ask for.
2. Examine the property and the neighborhood
3. Determine estimated depreciation and expense amounts
4. Set the rate of return
5. Organize the values under comparable sales, cost and income approaches and average them.

Make a point to see the property yourself. If you like it and think it may make a good investment, contact the seller or the seller’s broker to express your interest. At this time, request a setup document that includes the following:

1. Street address
2. Formal description of the property.
3. Tax lot and block numbers (legal address).
4. Assessed valuation of the local property tax authority.

   We have a google map tool that enables you to see information on each one of the Los Angeles neighborhoods, as well as search the area for homes and condominiums for sale by price range. CLICK HERE TO VIEW

5. Detailed schedule of income and expenses and net income. Income should include a detailed rent roll, expenses should be itemized and backup invoices made available for inspection.
6. Asking price

The next step is to arrange a more formal inspection of the property. It is recommended to hire an appraiser, but also to understand the appraisal steps as well to see any future growth potential the appraiser might not mention due to liability.

Ensure you have complete documentation of the property including: copies of leases, lot number and area of land, survey or detailed diagram of the property, building size and age, zoning regulations for the area, real estate tax, insurance and other expense data.

Start plugging in numbers to calculate the price you are willing to pay based on an income and expense projection with reserve allowances built in.

<< Back to Investing in Los Angeles Real Estate or Los Angeles Commercial Real Estate

We at Valerie Fitzgerald and Associates realize that you are in the information gathering stage of your purchase and we respect your privacy.  Should you have any questions, please feel free to email us at info@valeriefitzgerald.com or call us directly at 310-285-7515.  If you or anyone you know is looking to buy or sell a home, please note that we can provide detailed information and access to:

• Beverly Hills Real Estate
• Brentwood Real Estate
• Bel Air Real Estate
• Sunset Strip Real Estate
• Los Angeles Real Estate
• Santa Monica Real Estate
• Malibu Real Estate

You can count on the services of Valerie Fitzgerald and Associates to provide you with information you can trust.

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Tel: 310-285-7515
Fax: 310-271-9204

301 N. Canon Drive,
Suite 215,
Beverly Hills CA
90210

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