Calculating Expenses on Commercial Properties
Monday, May 16
Accurately projecting expenses on commercial real estate deals can make or break a deal. It is necessary to understand both the current expenses of a commercial property, and the pro forma expenses of a commercial property. During your analysis of a property, simply using the seller’s expenses...
How to Fund Your Real Estate Investments
Sunday, May 01
Even if you don’t have a ton of money saved up for a down payment to get started in real estate, there are still so many ways to finance a real estate transaction. Here’s a summary: 1. Traditional Financing Traditional financing on a residential investment property typically requires a 25% d...
How to Evaluate a Syndication or Joint Venture Opportunity
Sunday, April 17
There are benefits to passively investing in larger real estate deals, as described here, so individuals should consider investing. However, passive investors should not think that every joint venture or syndication was created equal, and must still do some due diligence on, not only the deal, b...
How a Master Lease Can Earn You Millions
Monday, April 04
A master lease is a valuable tool for an investor that could allow an investor to demonstrate increased income and obtain optimal financing. A master lease is a single lease that covers multiple properties leased from a landlord to a tenant. Because a master lease is a single lease, it will not...
When Cap Rates Don't Matter
Monday, March 21
Most investors use cap rates as a metric to analyze the offering price and valuation of a property. Strictly using cap rates, however, can lead you to miss substantial value add opportunities. Many value add properties have a low cap rate. For example, the cap rate of a mom and pop owned prope...
Managing Tenant Issues
Monday, March 07
Many folks are hesitant to invest in real estate because they are fearful of a tenant defaulting by not paying rent. This is a justified concern, but not one that should stop you from investing in real estate. Here are some steps you can take to mitigate your concerns: Build in vacancy reserves ...