Real Estate Agent for Sellers

Seller's Agent / Listing Agent

Selling an income-property at a top-of-the-market price requires more than just posting a pretty marketing brochure with pro forma income/expense data and waiting for the phone to ring.

Our Selling Process
Seller's Agent / Listing Agent

Why You Need a Seller's Agent?

The reality is, in most cases, months of pre-sale preparation is really required/recommended before the “property offering memorandum” is ever distributed to prospective buyers or brokers.

What all sellers NEED to understand BEFORE seriously contemplating selling is…

The primary metric for valuing income-properties is the capitalization of Net Operating Income. In other words, (all else being equal), the higher the supported Net Operating Income, the more an income-property is worth.

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Our Selling Process

Our experience has shown over many years that very few owners (even highly experienced private owner-investors) truly understand the impact that even a “few thousand dollars” of supported Net Operating Income can have on income-property valuation at selling time.

Let's take the below example and apply the step-by-step methodology and process Realty Yield encourages all sellers to go through before "launching" a property for sale.

Typical 30-Unit Apartment Building

This includes both the financial and physical components.

  • Current rents average $1,100 per unit which equals $396,000 in annual rent income.
  • Current other income (late fees - $1,800, laundry - $3,200, parking - $0, storage - $0, tenant utilities reimbursement - $0, all other - $0) equals $5,000 annually.
  • Current operating expenses (taxes, insurance, utilities, maintenance, professional management, all other) equals $170,000 annually.

Hence, current Net Operating Income = $231,000 ($396,000 + $5,000 (-) $170,000)

Assuming a market capitalization rate of 5.50%, this equates to a current value of ~$4,200,000

Step 1

Pre-Sale Assessment of Property

Agent's Role
  • Analyze Rent-roll, Financials & Physical Issues
  • Quantify Value of Implementing Recommendations
Seller's Role
  • Provide Realty Yield Operating Financials
  • Work with Realty Yield To Complete Physical Inspection

This includes both the financial and physical components.

The financial factors include: current rents versus potential market/full rents, current other income versus potential, the current operating expense load versus optimal and any “easy/near-term” added-value opportunities (example would be implementing a Utility-Bill-Back program) that could be applied before sale.

The physical components would include all “lower cost” aesthetic items (paint, landscaping, minor repairs, signage, lighting (exterior), litter & debris (exterior) and all/most minor unit deficiencies (worn out floor coverings, failing appliances, paint, etc.).

More often than not (unless the owner is a full-time professional investor and active asset manager), there is a list of both “financial” and “physical” items that a prudent owner should address PRIOR to advertising on the open market.  Furthermore, many of these items often can take months to correct/implement.

Unfortunately, too many sellers don't get the benefit of an analysis before they decide to sell.

Example Continued
Typical 30-Unit Apartment Building

Continuing with our 30-unit example case study above, Realty Yield’s assessment and analysis has determined:

  • Rents can easily be bumped to average $1,150 per unit, which equates to $414,000 in annual rent income (+$18,000 over current).
  • New “other income” can be generated by charging for extra parking spaces (10 spaces x $25 monthly = $3,000 annually) and implementing a utility bill-back program to have tenants contribute to raising utility costs = $14,400 annually).  Total increase estimated @ $12,400 annually.
  • Operating expenses can be reduced in the following areas:
    - Utilities (garbage) by reducing number of receptacles from 3 to 2.  Savings = -$3,000 annually
    - Repairs & Maintenance by utilizing third party subcontractors versus property management company personnel.  Savings = -$6,000 annually
  • Minor physical exterior deficiencies appear to negatively impact the number of drive-by inquires and application of quality new tenants.  Additionally, existing tenant perception is that owner is not maintaining property adequately. Hence, Realty Yield recommends freshening landscaping, power washing & restriping parking lot.

The financial ramifications of the above, to a selling owner, cannot be overstated.  The projected increase in likely sale price by acting on the above is/was as follows:

  • Projected rental income: $414,000
  • Projected “other income”: $17,400
  • Projected operating expenses (reduced): <$161,000>
  • Projected NET OPERATING INCOME: $270,400 (up from $231,000)

Assuming the same market capitalization rate of 5.50%, this equates to a new/projected value of ~$4,900,000 (~$700,000 value increase!).  Most owners would make the choice of waiting a few months before selling if this eye-opening analysis was simply communicated by a seller's adviser/listing broker.

Step 2

Pre-Sale Strategy & Action Plan

Agent's Role
  • Draft, Direct & Manage Pre-Sale Action Plan & Timeline
Seller's Role
  • Provide Input & Approve Pre-Sale Plan & Timeline

The reality is that initiating a rent increase, implementing a utility bill-back program, collecting parking space income, transitioning to third party R&M vendors and fixing a list of needed repairs is going to take some period of time before the improved financial results are reflected on an operating statement.

Realty Yield will work with you to draft a written plan and timeline as well as participate in the execution and management of this process.  We do it all the time.

Realty Yield is not one of those brokers that will hurry you to market just to close a sale and make a commission.  In fact, in many cases we strongly recommend just the opposite.  Ask our clients directly -- they will confirm this is true.

Step 3

Pricing & Offering Memorandum

Agent's Role
  • Determine Current/New Property Value & Suggest Price
  • Prepare Offering Memorandum
Seller's Role
  • Approve Listing Price and Offering Memorandum

In order to price a property properly we will compile a list of like-kind comparable sales, perform our own valuation analysis, review recent appraisals of similar properties, review current for-sale competition and factor any value-add/upside opportunities, which the subject property would afford a buyer.

Pricing should be done right from the get-go.  We don’t "buy" listings; in other words we won’t tell you your property is worth more than it really is just to get a listing, then later ask you to lower the price because the “market has changed".

You will get an honest opinion-of-value for your property from the beginning.  We encourage sellers to think like buyers. If you wouldn’t buy your own property based on what is being presented, why would someone else?  Again, top-of-market but realistic initial pricing is required if you want to work with us.

Realty Yield will then prepare the Offering Memorandum (marketing package). Our marketing materials are the culmination of many years of experience in knowing what gets results for our sellers and what doesn’t.  But again, don’t take our word for it.  According to the analytics from LoopNet (the #1 commercial-investment real estate listing site on the Internet), our listings are consistently in the top 5% of most accessed (clicked-on). The numbers don’t lie.

Our marketing packages are very focused on clearly differentiating your property (why a buyer should invest in it), supported by objective, compelling financial/investment return metrics. Yes, we also appropriately feature a representative sample of quality photos, rent comparables, sales comparables, market/sub-market and demographic information, maps, etc.

All sellers should ask to see samples of a broker’s marketing materials before retaining them.  We look forward to sharing ours with you.

Step 4

Marketing & Advertising

Agent's Role
  • Expose Property Through All Available Channels
Seller's Role
  • Inform Realty Yield of Any Material Changes In Property Operations, if applicable

There is no downside to maximizing exposure.  Obviously, the more qualified prospective buyers the offering gets in front of, the better.  We utilize all the following channels:

  • Commercial property listing websites (LoopNet, Showcase/Co-Star, CIMLS, Commercial Source, VerticalEmail, RMLS, Apartments For Sale, more…)
  • The broker community
  • Outreach to principal owners of other investment real estate
  • Current Realty Yield clients
  • Mid-high net worth individuals reallocating capital from other asset classes
Step 5

Putting a Deal Together

Agent's Role
  • Assess / Qualify Buyers
  • Negotiate Price & PSA Terms
  • Manage Process Through Closing
Seller's Role
  • Approve Buyer, Price and Contract Terms
  • Support Realty Yield During Buyer’s Due Diligence Period

Not all buyers/investors are created equal.  Circumstances, motivation, buyer experience, and selling broker's expertise all factor in on “selecting” the right buyer.  Our experience will pay big dividends here and all but eliminate false starts.

Negotiating/maintaining a final agreed upon sale price, which is at/close to the full listing price is much easier when the groundwork has been properly laid.  Since we support our listings and pricing with objective, verifiable data, big price concessions are not something our clients/sellers have to deal with.

Having said that, negotiations are part of every deal. All brokers/sales people say they are expert negotiators, we can back that up with real world results over more than two decades, ask our clients!

We have brokered nearly a half BILLION DOLARS worth of real estate deals. There is no substitute for experience.

One other key added-value component we bring to our listing agent services is that we also broker commercial/apartment mortgages (the financing most buyers need/want).  Deals fail for financing reasons more than anything else.  This won’t happen with us.  We know without a doubt what loans are available, what amounts can be borrowed and which buyers will be able to secure financing.  In many cases we end up doing the financing for the buyer, it turns out to be a win-win for everybody.

The bottom line is that our experience results in very few sale-fails once a property is put into contract.

Real Estate Brokerage
Apartment / Commercial Financing
1031 Exchange

Why Choose Us?

At Realty Yield, we want your investments to succeed. All investors need a plan, whether your goal is capital (equity) growth, maximum cash flow, realizing optimum tax benefits or any combination thereof.

The experts at Realty Yield will guide you through the complex and ever-changing world of real-estate investment with confidence. At Realty Yield, we know that lasting wealth comes from making the right decisions, at the right times. Knowing what to do in these moments is what sets Realty Yield apart.

By working with us, you’ll benefit no matter what your needs, whether you are looking to buy real estate property, sell real estate property, complete a 1031 exchange, secure a commercial loan, consult on investment real estate / portfolio performance improvement strategies, or executing a tax favorable exit strategy at retirement.

You are more than just a client, and we are more than just a brokerage firm. That’s why at Realty Yield, we make a personal commitment to you. We will create your own, unique, expertly crafted, Personal Real-Estate Investment Strategy. We give you the best results because we have the knowledge and experience to create your best plan of action. We will guide you through those vital decisions of what to do, how to do it, and when to do it.

We know we are only as successful as our clients. It is by providing unparalleled service that we keep our clients for life. Working side-by-side, year-in and year-out, we will proactively manage, assess, and strategize your financial investments through all stages of the investment life-cycle.

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Client Testimonials

All Testimonials
Mike Carlson has the ability to analyze and plan a strategy which takes advantage of market conditions, incorporates the best financing options and most importantly, maximizes the return on your equity. Mike is the real deal, honest, trustworthy and highly capable. I am happy to recommend him to anyone looking for assistance with their multi-family portfolio.
Gary M
2003 ~ Current
For anyone with real estate investments, Mike Carlson’s services are a necessity in order to achieve top results. Mike Carlson is very astute and knowledgeable in not only all aspects of real estate investment and wealth management but also in a wide scope business matters in general.
Lynn L
2005 ~ Current
Mike Carlson and his company are great - very professional, experienced and comfortable to work with. Mike’s analysis and technical abilities is top drawer! He knows how to evaluate portfolios and properties to determine the best investment strategy. Mike Carlson’s brokerage and negotiation skills are very polished and effective. Make no mistake about it; there is a distinct advantage in utilizing an experienced financing liaison. Carlson not only found good properties but also good financing. He made the entire deal work!
John B
2003 ~ Current
Mike has been what I was looking for in a commercial realtor. He has the unique ability to apply financial numbers to a project and not let the emotions of a property cloud the analysis. Working with Mike has always been about good communication and he does a great job. When you do finally find a property worth pursuing he is not pressuring you to make the offer and get the commission. It’s more about the long-term relationship. He reassured me that if he does a good job on this deal I will probably be back for more and sure enough I am in the hunt again.
Clinton L
2008 ~ Current
We were so pleased with Mike’s handling of the sale, purchase and financing of our real estate that we referenced Mike as a contact for our children and our attorney if we should die and the children were to be left with the apartments. We knew that Mike would be honorable and not take advantage of them in settling our real estate holdings.
L Family LLC
2004 ~ Current
I worked with Madison prior to her role at Realty Yield. Her drive and passion has always been evident in everything that she does. She truly is invested in her job and clients best interests. I would highly encourage anyone in need of guidance and expertise in investment real estate to consider Madison and the Realty Yield team.
Austin W
I was impressed with Cory’s ability to communicate and execute the sale of our duplex in pre-foreclosure with a very tight timeframe. He was respectful, professional and really made the transaction a pleasurable experience for my family.
February 2019
Cory Carlson was instrumental in the acquisition of our fourplex. His analysis skills, professionalism and productive communication while searching for our investment provided my wife and I confidence through the entire process. His connection with local lenders and understanding of the principles of finance prove Cory really is your one-stop investment broker and advisor.
Jason & Katie I
January 2019