A real estate broker is a real estate agent who continues their education and successfully receives a state real estate broker license. Unlike real estate agents, brokers can work independently and start their own brokerage and hire other real estate agents.
A REALTOR® is a licensed real estate salesperson who belongs to the National Association of REALTORS®, the largest trade group in the country. … REALTORS® are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics. Some REALTORS® are brokers, while some are agents.
It will take approximately 4 .5 months or 135 days to search for a home, then another 30-45 days to after negotiations and purchase contract before you close on your new home. These are averages and can widely vary depending on many factors.
Cap rate is short for “capitalization rate,” and is a ratio that buyers of commercial real estate investments use for a quick reference. To determine a cap rate, divide the net operating income (NOI) by the value of the asset.
Example: If a real estate investment has an NOI of $10,000 and is valued at $200,000 it would have a cap rate of 5%. (10,000/200,000= .5 or 5% cap rate)
Build-to-suit is when a property such as office space, retail space or restaurant is developed specifically for a given tenant that will occupy the space.
A Full Service Lease is when the lease payment includes all operating expenses such as utilities, electricity, janitorial services, taxes, and insurance.
A Modified Gross Lease includes some of the operating expenses such as electricity, utilities, taxes, janitorial services, and insurance, but not all. Often the tenant will pay for janitorial and utilities while the other operating expenses will be included in the rental rate. It is important to clarify this with the owner or broker.
A Triple-Net Lease (NNN) offers a rental rate that excludes all operating expenses such as electricity, utilities, taxes, janitorial services, and insurance. These expenses are expected to be paid directly by the tenant.
A LOI is a Letter of Intent. The LOI is used to offer notice to a Seller or Landlord from a Buyer or Tenant of their intent to purchase or lease a specific piece of real estate or space. The LOI describes some of the terms of the purchase contract or lease.