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MSA: Metropolitan Statistical Area in Commercial Real Estate

What is MSA in Real Estate

A Metropolitan Statistical Area, also known as an MSA, is an important factor for those considering investment in commercial property. Understanding what they are and what factors contribute to their creation can influence lending decisions and opportunities.

What Is a Metropolitan Statistical Area (MSA)?

A metropolitan statistical area is a government-designated area for a specific urban region. The U.S. Office of Management and Budget (OMB) … Read More

How to Calculate MIRR: MIRR Formula and Examples

How to Calculate MIRR

Commercial real estate investors need as much information as possible when deciding what to invest in and how to do so. Numerous types of financial data are available to allow for that, including modified internal rate of return (MIRR). This specific metric enables investors to determine if a property is a good investment or one that carries too much risk. Therefore, understanding this metric is … Read More

How to Become a Commercial Mortgage Broker

How to Become a Commercial Mortgage Broker

Commercial mortgage brokers hold a central role in commercial real estate, as almost every deal goes through them during the financing process. Brokers must understand investors’ and property owners’ needs, the lenders and financing programs available, and how to match the right borrower with the right lender.

If you have financial acumen and are interested in commercial real estate, this can be a promising way … Read More

What is a Sale Leaseback in Commercial Real Estate?

What is a Sale Leaseback

Owning commercial real estate can be a solid investment strategy, but it’s not right for every business or situation. Sometimes businesses find themselves owning a building, but wanting to focus on their core competencies. A sale leaseback may be advantageous in these situations, allowing businesses to focus on what they do while also freeing up capital. What is a Sale Leaseback?

A real estate sale … Read More

Capital Stack in Commercial Real Estate Investment

What is Capital Stack in CRE Investment?

Investing frequently requires substantial capital, and it’s not uncommon to secure funds from multiple sources. Capital stack refers to the various layers of funding used to purchase, develop, and operate a commercial property. If you’re doing any of these things with commercial real estate, and especially if you’re purchasing, you must understand the property’s capital stack.

What is Capital Stack in Real Estate?

Capital stack … Read More

What is Earnout on Commercial Loans?

What is Earnout

Various situations in commercial real estate may call for earnouts, an opportunity to pull additional money from a real estate asset when specific steps or strategies are completed. There are various situations where property owners may need to refinance their existing loan, but their business plan has not yet reached its expected goals. That is, they may put additional value into the property through … Read More

A Guide to Wholesaling Commercial Real Estate

Wholesaling Commercial Real Estate

Wholesaling commercial real estate lets knowledgeable investors leverage their expertise more than their capital. This is a proven and long-established commercial real estate investment strategy, one that can be especially useful for investors who don’t want to risk large amounts of capital.

What is Wholesaling in Commercial Real Estate?

A commercial real estate investor who wholesales essentially acts as a middleman (or person). They find … Read More

A Guide to Commercial Real Estate Asset Management

Commercial Real Estate Asset Management

Commercial real estate asset management is the method used to determine how effective a project or property is in achieving the goals the investor sets. In short, it is one of the most important ways to gather information to make a decision about assets before purchase or, in some cases, in the decision to liquidate.

What is Asset Management in Commercial Real Estate?

Asset management … Read More

Absolute Net Lease: How It Differs from Triple Net Lease?

Absolute Net Lease

Commercial real estate investors are generally responsible for the maintenance and repair of the buildings they purchase unless there’s an absolute net lease in place. Using an absolute net lease shifts these responsibilities onto the tenant, which can result in easier operations, more lenient financing, and several other benefits.

What is an Absolute Net Lease?

An absolute net lease is one of the strictest commercial … Read More

What to Consider When Buying a Commercial Property?

Buying a Commercial Property

Commercial real estate can be a profitable mid- to long-term investment, and it’s a good option when looking to diversify a portfolio. Whether heavy in bonds, equities or even smaller residential real estate, commercial properties offer exposure to different markets, stability during downturns in other markets, and some excellent opportunities.

Of course, it’s essential to purchase promising properties at advantageous properties. Here’s how to go … Read More