Welcome to the RANCRE show, commercial real estate with no stone left unturned.

Hey, everyone. Welcome to the RANCRI show. I'm your host, Mike Tarvella. And today, we are here to discuss how to comp an apartment building.

There's a lot of different information, how to use it.

Brokers provide a lot of information on comps, but it's important for you to do your comp so that you understand your market, understand your competition, and see where you can

really derive value from your apartments and

see what your value add process could be. So the first thing first, when I get a listing or want to

see what apartments are in the area, I first go on Google Maps and I just search the address of

the target property and then I zoom out a little bit and click all the different

find these apartments near that property. So no matter the age, size, or vintage, I click on all of them,

and then I search them on apartments.com. This does two things. One allows you to see what the

low end and the high end is in that market,

and you kind of figure out where your target property stacks. And two, it just really shows gaps in marketing.

So some apartments that may not use apartments.com. Some might not have a website, which could target more mom and pop owners.

But it's important to just understand all of the listings in that area. Two, once we understand

the competitive landscape in that property in that region, we then really decipher and add a filter

of the size. So the last thing you want to do, the size, when I say size, I mean unit count, you don't want to compare a 250 unit apartment to a 12 unit

that's like comparing a single family house to an apartment complex.

So it's just super important that you're comparing the similar size and more

importantly, amenity package. If you have a Class A apartment that's 200 plus units, then they

have more amenities than a 12 unit next door. So it's important that you have that filter just to

make sure you understand what can be because the amenity rich package will probably

have a premium on that compared to your smaller with less amenities.

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