In its most basic form, cash flow is cash coming into your pocket. Negative cash flow is cash going out of your pocket. But, let’s be real. The real question is, how do you determine the true cash flow of a property? The right answer can make you money by helping you see if this investment is right for you. An incorrect calculation can cost you big money. Here is a quick example to test your current investment analysis skills:
It takes a considerable amount of work to get a client. Once we get one, we want to keep them. In fact, many agents appear to believe they have “ownership rights” to a client that they have worked with in the past.
At the very first meeting between agent and prospect there is a “sizing up” period. Once the prospect selects the agent, that prospect becomes a client to that agent. Over the course of a transaction, a trust on the part of the client is often formed. That trust often extends beyond the initial transaction. How careful is that agent with that trust?
We have only to look at the definition of fiduciary, which is “held or holding in trust”. If you are in San Diego and you have a client who asks you to list their property in Sacramento, you have the license to do it. Yes, it is outside of the area in which you have knowledge. But, the business is a little slow and you really want to help your client, (and earn a fee) so you agree. Are you keeping your fiduciary responsibility to your client?
December 2006
Provided by Sheryl A. Smith, CCIM, CEO of Smith Real Estate Services
Sacramento Retail:
- Street Retail had the highest average asking rent of $2.13psf/mo.
- Average Asking Sales Prices have come down about 3.9% since mid 2006, across all retail property types.
- About 52% of the listed retail properties are between 5,000-24,999 sf.
- 14th lowest retail vacancy market in the USA for Q4/2004.
Average Asking Price by retail building size
5,000-9,999sf $258 psf (31% of available property listed)
10,000-24,999sf $224 psf (22% of available property listed)
25,000-49,999sf $192 psf (7% of available property listed)
