The David Greene Show Mortgage Monday - Is Commercial Real Estate for You? | Episode 69
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Jun 30, 2025 In this enlightening discussion, Christian Batchhelder, a commercial real estate funding expert at TheOneBrokerage.com, outlines the evolving landscape of commercial real estate (CRE). He delves into current market trends, clarifying the unique valuation methods specific to commercial properties. Christian highlights the substantial tax benefits and financial advantages of investing in CRE over residential real estate. Listeners will learn about navigating commercial loans and uncovering strategies for success, making it an enticing option for potential investors.
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Commercial RE Valuation Insight
- Commercial real estate value is based on income, not comparable sales like residential real estate.
- Increasing net operating income directly increases property value in commercial real estate.
Boost Value by Raising NOI
- Improve commercial property value by increasing net operating income through rent hikes or efficient management.
- Every increase in income proportionally increases the property's market value.
Understanding Cap Rates
- Cap rate measures demand and expected cash flow without loans for commercial properties.
- Low cap rates indicate high demand and high prices; high cap rates indicate risk or less demand.