Looking for help with Underwriting Standards for Strip Malls?
Hi All,

I am working on underwriting a strip mall for the first time. The template I am using is asking for Insurance, maintenance, management fee, reserves for replacement and other expenses. How do I figure this out. For example when I underwrite multifamily Insurance is $280 per unit/door. 

Thank you in advance.
[{"id": "ikhqbhz", "text": "I\u2019d use BOMA guide for this.", "replies": [], "depth": 1}, {"id": "ikihxxp", "text": "Much of the information you seek is not freely available.\n\nYou're basically asking, what are the cheat codes. \n\n\nThis industry is a gamble, find some information, it might be right, it might be wrong. It's your money.", "replies": [{"id": "ikivcu0", "text": "What an unhelpful response. Exactly why op is asking\u2026", "replies": [], "depth": 2}], "depth": 1}, {"id": "ikimwso", "text": "Do you follow @RealEstateTrent on Twitter?\n\nDude knows strips.", "replies": [{"id": "ikj9hyy", "text": "My favorite Twitter follow", "replies": [], "depth": 2}], "depth": 1}, {"id": "ikjds8g", "text": "Are you underwriting the deal to rep the seller or underwriting the deal for you to invest in? They are 2 different things.", "replies": [{"id": "ikje3dk", "text": "I am investing in the deal", "replies": [{"id": "ikjf1xy", "text": "Most investors have their own standards. I will tell you that if you are looking at a deal on market, be suspicious of the broker\u2019s numbers. Management fee- depending on the size of the deal is usually between 3-5%, insurance get a quote on because it won\u2019t necessarily be the same from person to person, reserves you need to put at a level you are comfortable with. On newer construction I (as a broker) will go as low as $0.15/ ft. If it\u2019s in bad shape I may slap $0.30/ ft on it. Neither of those will serve you well when it\u2019s actually time to replace the roof, repair the parking lot, stripe/ seal the lot, update the property, etc etc. I\u2019ve always been told there is broker NOI and buyer NOI. If they are NNN leases you have less to worry about- assuming your tenants can pay. If they are gross, you need to dig in way, way more about the condition of the property, taxes, deferred maintenance, insurance, etc. because missing on the expenses when you are chiefly responsible for them will get you buried. \n\nAs a rule of thumb, anything under 30% expenses to total income is light. \n\nFYI, your taxes will go up. Look for deals sold in that market recently with a similar price point to see what you can expect for a tax hike and check out the assessor\u2019s criteria to try to predict how ugly it will get.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]