Q: What is a GIM?
A: GIM stands for Gross Income Multiplier, which is also known as Gross Rent Multiplier (GRM). This is a method used to value apartments by dividing the price of the property by the current rental income. If the total current rental income is $100,000 and the asking price is $1,000,000, then the gross income multiplier =10. [$1,000,000 divided by $100,000 = 10.]
Q: What is a CAP rate?
A: A Capitalization Rate (CAP rate) is the percentage rate of return based on a piece of property's income. This is the income divided by price. A property that cost $2,000,000 with an income of $150,000 would have a CAP of 7.50.
Q: What can I learn from a Proforma?
A: A proforma tells you the Gross Income Multiplier (GIM) and the CAP (capitalization) rate for the property. You also learn what current rent rates are overall along with income and expenses and other building details. Building and property characteristics include: unit mix, price per unit, overall square footage, amount of acreage, assessed values and unit amenities.
Q: What's the difference between HFO and other brokers?
A: In the markets we serve, we are the leading commercial real estate company specializing in multifamily properties. As a result, we know how to market your property -- locally, nationally, and globally -- better than anyone. Our company is a special place. Our working environment is close-knit and hard-working. We are passionately team oriented, persistent, and driven to succeed. We employ a full-time professional transaction manager who ensures things run smoothly. We also have a full-time VP of Research and Marketing to work exclusively on leveraging every aspect of marketing your property to the widest possible audience nationwide.
We routinely receive compliments for having professional, responsive and talented people who build enduring relationships with our customers. We have a reputation for expeditiously and reliably doing exactly what we say we will do. Let us prove it to you.
Q: What do I get when I hire you?
A: HFO employs a detailed marketing strategy. Once a property is listed, we immediately begin making personal telephone calls to individuals in our proprietary database of more than 2,000 investors whose purchasing criteria match your listing. We also push your listing by e-mail to hundreds of buyers through our electronic newsletter. Your listing also reaches visitors to our web site -- up to 3,000 investors each month. Finally, we utilize cutting-edge technological resources to reach more than 1.1 million investors and brokers throughout the nation and around the world.
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