Timing is everything when analyzing investment portfolios, especially if financing is in the future plans of the portfolio. Critical decisions for financial placement are not uncommon at this time of the year. As the start of 2015 has commercial real estate investors evaluating their portfolios in terms of how to best maximize and enhance their cash flow, it’s time to consider financing options. One such option is — Pacific Capital, LLC, with the release of their new financing program which is designed to help investors analyze and enhance their opportunities.
In order for any investor to effectively leverage an asset they must have the best data and relevant information available. Often an investor will utilize the first quarter of the year to assess whether it is time to make that next acquisition or disposition. “As there are several tools investors can turn to when making a value based analysis of an asset, whether to buy or sell, it is important to understand the differences of these tools and when to use each. An investor needs to use the right tool for the right analysis to maximize your financing options”, said Jason A. Schuck, President of Pacific Capital, LLC.
Pacific Capital is advising their clients as they plan out their coming year, whether it may be an acquisition or disposition, as to the advantages and disadvantages of a Comprehensive Market Analysis (CMA) and a Broker’s Price Opinion (BPO) versus an appraisal. Unfortunately, many investors do not clearly understand when is the best or most advantageous time to use each of these tools.
While an informal CMA (also known as a comparable market analysis) may provide a rough idea of the competitiveness of the market and the approximate value of an asset, it is usually beneficial to obtain a more objective market analysis by obtaining a BPO, as a BPO is a formal valuation. However, if a detailed and accurate assessment is more vital to determining the financial placement, a full appraisal will certainly provide the best picture of the assets full value and potential.
Many investors prefer to use the CMA or BPO approach due to the minimal cost to obtain these reports; however, investors should consider the importance or weight this report will impact on a portfolio’s ability to obtain financing. Although an appraisal can cost several hundreds to thousands of dollars compared to the no or low cost CMA or BPO, when planning financial strategies it’s best to remember the famous saying by German scholar and philosopher Gabriel Biel "you get what you pay for".
As time can be critical for the placement of an investor’s financing, Pacific Capital and their established team of advisors fully understands the myriad levels and facets involved in commercial real estate investing and its financial planning. They regularly assist discerning investors to maximize not only returns and enhance the overall portfolio, but to minimize the cost of funds and increase financing options.
Pacific Capital’s new financing programs are designed to offer options for all investors. Whether a portfolio has mixed or specific assets, such as multi-family complexes, office buildings or hotels, these new low interest rate programs are a premium answer to the investor interested in pursuing the best rates available in today’s diverse market.
Release ID: 76357