Reno’s business-friendly climate and robust economy result in high demand for both commercial and multifamily properties. Whether you’re looking to acquire new property or sublease the one you already have, NAI Alliance’s Investment Team is here to help.
Working with our expert team means leveraging decades of experience to make your hard-earned money work even harder. We’ll implement carefully planned investment strategies to ensure you maximize the value of your investments and mitigate the risks associated with real estate investing.
Your real estate investing journey begins with building an investor profile. We’ll work with you to identify your investing goals and risk appetite as well as your property preferences. Next, we’ll work on the investment strategy, adjusting to whether you’re going to buy and hold property or renovate and flip it.
For commercial investments, we’ll build targets around capitalization rates and internal rate of return (IRR), which differ from residential properties that generally focus on rental yield and value appreciation.
Next, we’ll work to build your capital stack, which refers to the financial instruments you use to fund the property purchase. In this phase, we weigh the options, ranging from traditional CMBS (commercial mortgage-backed securities) to private lenders, and determine the capital stack that best suits your needs and budget.
With the capital stack figured out, we’ll walk you through Reno’s commercial real estate landscape through a detailed study of vacancy rates, rent growth, and other key statistics in the city’s commercial submarkets.
Next, we’ll examine commercial property listings to identify potential deals that align with your investment needs. However, we delve deeper by utilizing our real estate contacts and developer relationships to identify potential deals that may not be readily apparent on public listings. From the list of properties, we’ll work with you to build a shortlist.
To accurately estimate the value of your investment, we’ll build a detailed pro forma to project its potential income, debt service coverage, and operating expenses. This way, you can make an educated guess of whether a property is a good investment.
Commercial property tours typically involve inspecting a greater number of items compared to residential property tours. To ensure you have a thorough understanding of the property’s condition, we’ll accompany you to inspect its parking spaces, road access, roofing, signage, and other relevant aspects to verify that everything is in order.
Commercial properties often require more due diligence steps, which can become complicated. That’s why we work with you to plan and organize the necessary inspections and audits, ensuring your property is compliant with local regulations. Depending on the property, this can range from environmental inspections to Americans with Disabilities Act (ADA) compliance checks.
With the due diligence plan in place, we proceed by drafting a Letter of Intent to outline the purchase price, earnest money deposit, and the due diligence window. We’ll also help you negotiate favorable terms, such as brokerage fees and seller-paid impact fees.
The next step is to secure financing for the property. We’ll send the pro forma and your financial details to the chosen lender and secure your loan to purchase the property.
Once we’ve secured the financing, we can convert the Letter of Intent into a Purchase & Sale Agreement and establish contingencies for financing, title, environmental, and inspection purposes. We’ll also help you deposit the earnest money with an escrow company to demonstrate your serious intent to buy the property.
Next, we’ll conduct a comprehensive due diligence inspection and audit, encompassing environmental and land title surveys, a title search with Washoe County authorities, and other due diligence steps relevant to the property purchase.
The journey doesn’t stop after the property is officially yours. We’ll check back with you periodically to compare asset performance with our pro forma and advise you on ways to maximize the value of your investments, such as adding value-added renovations or refinancing.
Whether you’re looking for acquisition or disposition opportunities, the Investment Team at NAI Alliance can help you devise a plan to reach your goals. Our objective is to help you understand how to maximize the value of your real estate investment.
Our team of experts has over 100 combined years of experience to help make your money work harder for you. Successful transactions are supported by carefully planned investment and asset management strategies. We have the knowledge to guide you in your investment decisions and help you mitigate the financial effects of any uncertainties or risks.
You should work with real estate agents when investing in Reno commercial properties because they can help you find listings that may not be available to the public. Additionally, real estate agents can walk you through the entire sales process to ensure it goes smoothly.
Reno is a great place for commercial real estate investing due to its business-friendly climate and strong economic growth. Because the city is popular for businesses, commercial rental demand is often quite high, meaning commercial property investments are likely to profit.
The main difference between commercial and residential real estate investments is the type of property you invest in. Commercial real estate investments typically involve properties such as retail spaces, offices, multifamily residences, and industrial facilities. Residential real estate investments typically focus on single-family homes.
While you can’t eliminate all risk in commercial property investments, thorough research and due diligence go a long way in mitigating risk. Knowing everything you need to know about your prospective property helps you identify issues early on and gives you the opportunity to address them before they become problems once you own the property.
Commercial real estate deals can take anywhere from 30 to 90 days to finish. However, the transactions may take longer if there are numerous due diligence steps to complete.
