Episode notes
Charlie Johnson breaks down how mortgage pros and buyers use the income approach to value commercial properties.
– Formula: Net Operating Income ÷ Cap Rate
– Example: $2M retail strip earning $150K with a 7.5% cap rate– 2025: Industrial cap rates = stable 6–8%, office = higher, more risk
📌 Mortgage pros: Verify income data—leases, expenses, and realistic rents.
📌 Buyers: Compare cap rates to local market averages to catch inflated prices.
Working with the right AMC or lender makes all the difference. Visit nationwideamc.com to learn more!