Annual Property Operating Data (APOD)

Annual Property Operating Data (APOD)

One of the most important preliminary tools used in evaluating commercial real estate is the Annual Property Operating Data (APOD) worksheet.  It tells the story of how the property is currently operating as of the first year of operation.  There are limitations to...
Limitations on Cash on Cash Return

Limitations on Cash on Cash Return

Our previous post discussed the positives and negatives of using the capitalization rate to evaluate an investment.  Similarly, another quick and easy calculation often used in commercial real estate is the cash on cash return analysis.  The basic premise of the...
Preparing for Capital Improvements

Preparing for Capital Improvements

One thing that investors never like to do is spend money; however if you hold a property for a long enough period of time you will inevitably be left with the prospect of making capital improvements.  Capital improvements can include anything from putting on a new...