Nathan Bragg - REMAX Commercial Real Estate Broker

06/07/2026

WHAT IS THE DIFFERENCE BETWEEN STATUTORY AND CONTRACTUAL DISCLOSURES IN COMMERCIAL REAL ESTATE?

I get asked this a lot by investors and residential agents.

STATUTORY DISCLOSURES

These are disclosures required by law.

They come from federal, state, or local regulations and often include known material facts that could affect a buyer’s decision.

• Required by law
• May include known material facts
• Often require specific forms or procedures
• Vary by state and property type
• Failure can create legal liability

CONTRACTUAL DISCLOSURES

These are disclosures and documents required by the purchase agreement or lease.

They are specific to the transaction and negotiated between the parties.

• Required by the contract
• Can be negotiated
• Vary from deal to deal
• Often include due diligence items
• Failure may be a breach of contract

PLAIN ENGLISH

Statutory disclosures answer:

“What am I legally required to disclose?”

Contractual disclosures answer:

“What did I agree to disclose in this transaction?”

SIMPLE EXAMPLE

A seller is marketing a multi-tenant retail property.

The seller may have legal obligations to disclose certain known material facts and other items required by applicable law.

The purchase agreement may also require the seller to provide:

• Rent roll
• Operating statements
• CAM reconciliations
• Service contracts

The first group is statutory.

The second group is contractual.

WHY DOES IT MATTER?

Understanding the difference helps buyers, sellers, landlords, and tenants identify what the law requires and what additional information should be negotiated into the agreement during due diligence.

A successful transaction requires attention to both.

One comes from the law.

The other comes from the agreement.

Ignoring either one can create problems.

Nathan Bragg
Managing Director, REMAX Commercial – REMAX Time Realty
909-210-3175

REMAXTimeCommercial.com

Analysis – Strategy – Results

This post is for general educational purposes only and is not legal, tax, or investment advice. Disclosure requirements vary by state, property type, transaction structure, and applicable laws and regulations. Always consult qualified legal and tax advisors regarding your specific situation.

12/22/2025

What is IRR in commercial real estate?

I teach this in my training to our residential agents and it is sometimes confusing.

Explained Clearly:

IRR (Internal Rate of Return) shows the annual compounded return an investor earns over the entire life of an investment, including cash flow and the sale.

It converts different cash flows over time into one comparable annual percentage.

• Includes annual cash flow
• Includes sale proceeds
• Accounts for how long the investment is held
• Allows comparison across different asset types

Plain English:

IRR answers this question:

“If I invest money here, how does this perform compared to everything else I could do with my capital?”

IRR allows investors to compare apples to oranges:

• Real estate vs stocks
• One property vs another
• Short holds vs long holds

Everything gets converted into the same annual return metric, creating an even evaluation.
Simple Example - Not precise just an example of the concept:

An investor purchases a property for $1,000,000.
Cash flows:

• Year 0: –$1,000,000
• Years 1–4: +$80,000 per year
• Year 5: +$80,000 cash flow + $1,200,000 sale

Total Year 5 inflow: $1,280,000

The single annual return that correctly matches the amount and timing of these cash flows is:

IRR ≈ 11.2%

Why investors use it:

Cap rate measures income today.
IRR measures investment performance over time and how it stacks up against other opportunities for capital.

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Footnote:

IRR can be calculated with or without financing. This example reflects a no-debt (unlevered) return. Using leverage changes the IRR by amplifying both gains and losses.
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Nathan Bragg
Managing Director, RE/MAX Commercial – RE/MAX Time Realty

Top 100 U.S. RE/MAX Commercial Brokers 2023–24
909-210-3175
REMAXTimeCommercial.com

Analysis – Strategy – Results

12/14/2025

What is a Cap Rate in commercial real estate?

This is a key term, and foundational when dealing with investment commercial real estate.

Explained Clearly:

A cap rate (capitalization rate) expresses the return on a commercial property as a percentage of its price.

Cap Rate = Net Operating Income (NOI) ÷ Purchase Price

• NOI is income after operating expenses

• Operating expenses are the costs to operate the property

• Financing is NOT included

Plain English:

Cap rate tells you the annual return percentage an investor is buying based on the property’s income relative to the price paid.

It does not tell you how much income the property produces — it tells you what return that income represents as a percentage.

Simple Example:

If a property produces $100,000 in net operating income and is priced at $1,000,000:

$100,000 ÷ $1,000,000 = 10% cap rate

Why investors use it:

Cap rates allow investors to quickly compare income-producing properties using a common percentage metric.

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Nathan Bragg
Managing Director, RE/MAX Commercial – RE/MAX Time Realty

Top 100 U.S. RE/MAX Commercial Brokers 2023–24

909-210-3175

REMAXTimeCommercial.com

Analysis – Strategy – Results

06/17/2025

RE/MAX TIME #1 INDIVIDUAL RE/MAX OFFICE THE INLAND EMPIRE AND #2 IN THE STATE OF CALIFORNIA - FOR A REASON - AGENTS WHO MADE THE LIST - MANY OTHERS ON THE WAY

🔥 RE/MAX Time – National Recognition on RealTrends 2024 🔥
Every year, RealTrends ranks the top real estate agents across the United States based on verified sales volume. Out of over 1,600,000 million Realtors®, the following RE/MAX Time agents from our

Rancho Cucamonga office ranked among the very best:

#514 – Margarita Junak
#4,591 – Rodrigo Franco
#6,602 – Erika Shinzato
#8,285 – Walid Milad
#18,026 – Terri Barrett
#18,059 – Thi Vu
#19,175 – Evelyn Blanks
#19,207 – Sam Ramey
#19,823 – Leticia Arteaga
#20,661 – Robert Watkins

📈 These rankings are not estimates—they're based on closed sales volume, nationally tracked and published by RealTrends + Tom Ferry The Thousand.

✅ To be ranked means you’re not just active—you’re outperforming 99%+ of agents in the country.

This is what real leadership looks like.
RE/MAX Time isn’t just local. We’re national-level producers—and we’re just getting started.

View the top real estate professionals in United States, based on data from the previous calendar year.

02/22/2025

BRING ALL OFFERS

We are proud to be the exclusive listing brokers of this exceptional development opportunity asking $17,000,000.

Outstanding development opportunity for 215 to 245 high density apartment units in the heart of a very well established in upscale community in Southern California.

Currently, there is a profitable in operating bowling alley on site, but the real play is the development opportunity, seller is open to multiple options.

Contact us for more information and a detailed offering memorandum.

Nathan Bragg
RE/MAX Commercial
remaxtimecommercial.com
901-210-3175

https://www.loopnet.com/Listing/400-W-Bonita-Ave-San-Dimas-CA/34904732/

12/17/2024

WAREHOUSE AND OFFICE FOR LEASE - BLOOMINGTON ,CA

2,000 SF Industrial warehouse 1/2 of existing
1,800 SF Office

Each lease separately or together. Areas in Yellow Available

Contact me today or go to the listing site for the Offering
Memorandum photos and site plan under attachments: http://www.loopnet.com/Listing/29270742

Nathan Bragg
Division Director | Managing Commercial Broker
RE/MAX Commercial
DRE #01340519 | remaxtimecommercial.com | 909-210-3175