Determining Value
Firstly, the Opinion of Value starts with looking for value-add strategies. This technique is determined by recognizing and undoing any constraints that exist with the property.
Constraints involve regulations, zoning changes, or making physical changes that can attract better quality deals. The low-level or least costly constraints are operational and involve improving management: raising rents and lowering expenses.
Cosmetic changes, like new paint or striping a parking lot, are moderately expensive. While construction changes, like replacing a roof or adding on more square footage, are very expensive.
CannaMercial Opinion of Value is predicated on finding three properties that have sold in the past year and analyzing purchase price, cap rate, gross rents, and NOI.
