Since Bb is down this weeks, it seems like a good time to provide details on the final project. Feel free to submit a comment (use the form at the bottom of this post) so I can respond to questions for all to see.
I’ve broken the project into 2 pieces. The first piece is essentially a rough draft and counts toward your regular assignment for Module 7. The second piece is the final product and the presentation.
Assignment 7: Investment Proposal Presentation Outline (80 points)
- Identify a commercial investment property
- No Single Family homes
- Multifamily Residential (Apartment Building) is preferable
- Office or Retail or other commercial is okay with permission
- Minimum 10 units
- Prepare a PowerPoint presentation you will use to pitch to investors
- Include a valuation estimate
- Include a complete ROI analysis
- Include estimate of up-front capital required
Assignment 8: Final Project Presentation (200 points)
- Preferred: Present your investment proposal live (10-15 min) during a Zoom conference (date/time TBD), or
- Optional (if #1 isn’t possible): Record a video presentation.
- Video quality isn’t terribly important. Your phone camera/recorder is sufficient. The video doesn’t need annotation or professional touch ups.
- Audio quality IS important – I must be able to understand you
- Files to submit
- PowerPoint File
- ROI Analysis spreadsheet
- Video (if applicable)
So, Step 1 is to identify your commercial property. It should be listed for sale. These properties are more difficult to find. You won’t find them on Zillow. Some are listed on the MLS but some aren’t. Instead, you’ll have to use a website like LoopNet. There may be other good websites. Let me know if you find a good one!
Step 2 is valuation. I will post instructions here for valuation of commercial property. Note that the reason multifamily residential is preferred is because it’s fairly straight forward to estimate value. If you choose a different type of commercial real estate the valuation step may be trickier.
Step 3 is ROI analysis. It’s basically the same deal as the single family ROI analysis you already completed. But some of the numbers may be more challenging to estimate. Don’t worry. I’ll help.
I’ll provide more details here as we go along.
Questions? Submit below.