Lighthouse Real Estate Services - Expert Evaluation and Validation Solutions
Case Studies:

The Importance of an Interior Inspection

Property Type:         Owner-Occupied Industrial.
Evaluation Method:  Original Sales Approach.
Location:                  Madison, Wisconsin. 

During the property inspection we observed water stains on the ceiling.  
After discussion with ownership; it was determined that the roof needed repair and that repair estimates obtained by ownership amounted to several thousand dollars.

After sharing this information with the bank, an escrow account was established for facilitating the repairs and the amount of the repairs (as a condition of closing). 
The bank was then able to close the loan for their client and protect their collateral. 

The Importance of an Interior Inspection

Property Type:         Owner-Occupied Bar and Restaurant.
Evaluation Method:  Original Sales Approach.
Location:                  Milwaukee, Wisconsin. 

The bank informed us that the property was a bar and restaurant on the first floor 
and storage on the second floor.  Prior to touring the property, we confirmed this 
with The City of Milwaukee Assessor’s Office. 

However, upon touring the property, we learned that the second floor had been converted into a two bedroom apartment. This led to a higher market value of the property.

The Importance of Accurate Building Measurements

Property Type:          Institutional.
Evaluation Method:   Original Sales Approach.
Location:                   Madison, Wisconsin.

The bank provided a prior appraisal which included building measurements of the property.  Prior to touring the property, we researched The City of Madison Assessor’s Website to confirm building measurements.  We learned that the measurements in the prior appraisal were different from the the assessor’s records.

During the property tour, we measured the building to get the exact square footage, so the property could be valued correctly.

The Importance of Knowing the Occupancy Level

Property Type:         Multi-Tenant Industrial.
Evaluation Method:  Sales, Income, and Market Rent Analysis (MRA).
Location:                  Waukesha, Wisconsin.

The bank requested a Sales and Income Approach Evaluation based on the existing leases and a presumed occupancy of 100%.  However, while touring the property, 
we learned that the property was approximately 50% vacant.

After discussing the 50% vacancy with the lender; we recommended a Market Rent Analysis (MRA) to determine a Stabilized market value (based on 100% occupancy) and in-turn an As Is market value (based on 50% occupancy).

By using a Market Rent Analysis (MRA) we helped the bank understand their current and future collateral position(s) for this 50% vacant, income-producing property. 


Lighthouse Real Estate Services, Mukwonago, WI 53149
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