In prior posts, I've outlined many of the weaknesses of each of these techniques. What I find interesting is that the Band of Investment and Mortgage Equity techniques are still being used rampantly in the appraisal industry today. This recession should have been a wake-up call that market derived cap rates are the way to.
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The Misleading Marina Cost Approach – Part 4 of 4
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Posted by John Simpson
A marina is a business. Let's take a quote straight from my Marina Investment book draft.
Read moreThere are many aspects of marinas that are uncommon to most forms of real estate yet common to businesses. The best indications of this are the income and expense line items and balance sheets shown on marina financial statements and.
The Misleading Marina Cost Approach – Part 3 of 4
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Posted by John Simpson
Let's talk about coming up with the reproduction cost new and depreciation for marina docks and buildings. Most appraisers don't know that there is a dirty little secret that only marina industry people are only too aware of (yours truly exempted, of course). So dirty that it puts all the cost approaches into the realm.
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