Mountain View, California (EastBayDaily) — NetGainRealEstate.com, the leading independent website providing value-added information for commercial real estate investing, has unveiled a new profit and loss statement to drive the business model for residential income property.
As the global economy has undergone dramatic changes, the business model for income property has remained more or less static. The signs of a transformed economy are abundant: Job functions are changing. Consumer buying habits are changing. How business uses its physical space is changing.
At the same time, the business model for income property has long been represented by the following: Space (square feet) is leased and the vast majority of income comes from one source: rent. Operations have become more streamlined, but remain fundamentally the same.
In response to investor demands for yield, NetGain has released a new profit and loss statement that will drive a successful business model for residential income property. The plan calls for diversification of income to bid for the untapped outlay of resident funds, which far exceed an individual’s rental payment. The plan also calls for a new focus on the expense side of the statement, with significant saving opportunities available through technology and conservation.
NetGain’s founder Allen Cymrot states “Income property is an operating business with the business model summarized in its profit and loss statement. No change in the present business model would ultimately result in the deterioration of earnings.”
NetGainRealEstate.com was founded in Mountain View, CA in 2005, and provides regular written analysis of commercial real estate investing, online due diligence for minimizing risk and maximizing ROI on income property, and cap rate recommendations based on three leading economic indicators.