Are Storage Units a Good Investment?
The investment in self-storage could be beneficial to some investors. With a wide range of potential storage facility opportunities in many areas, it is valuable to explore this investment avenue to determine how profitable it could be.
What is Self Storage?
Self-storage is an opportunity to piece out and rent space to those who need to store items offsite. These are typically buildings that have … Read More
A Guide to CMBS Delinquency Rates
The commercial mortgage backed securities (CMBS) rate has been fluctuating in recent years, and sometimes has spiked as the commercial real estate landscape adjusts to new work habits. Because CMBS are borrowed by real estate investors and purchased by securities investors, delinquency rates can affect both parties. Here’s a guide to CMBS delinquency.
Understanding Delinquency Rates
At its core, a delinquency rate quantifies the proportion … Read More
What is an Opportunity Zone? A Guide in Real Estate Investment
Every real estate investor needs to find at least one way, and preferably several, to gain an advantage in the market. One of the largest potential advantages is an opportunity zone (OZ). If you’re unfamiliar with this particular benefit, here’s why you might want your next property to be in this particular type of zone.
What is an Opportunity Zone?
Created by the Tax Cuts … Read More
Understanding Mortgage Constant: Calculation, Formula and Applications
For real estate investors, understanding all of the numbers in any transaction is critical to determining if a transaction is worthwhile. Often, the focus is on determining if the return on investment is worthwhile, and that is often the case when costs are in line with earning potential. One specific area of focus is the cost of debt service. Mortgage constant is one of the … Read More
What is DIP Financing and How it Works?
Securing financing is a process for any business that needs to borrow funds, but it’s especially challenging when going through bankruptcy. For businesses and firms that are facing bankruptcy, there’s debtor-in-possession financing (DIP financing).
What is DIP Financing?
DIP financing is a specific type of financing that may be available to businesses going through Chapter 11 bankruptcy proceedings. The term “debtor in possession” refers to … Read More
Understanding Interest-Only Loans in Commercial Mortgages
For investors considering the purchase of real estate, the goal is to keep costs as low as possible. A component of that is obtaining a low-interest rate, but it may also be important to minimize cash flow loss. An interest-only loan may offer some assistance in that area.
What is an Interest-Only Loan?
In its simplest terms, An interest-only commercial mortgage is a loan in … Read More
Insurance for Commercial Property: What’s Covered and What’s Not?
Any investment in commercial property is a significant one, and even the most well-managed properties suffer damage. Commercial insurance is a necessary investment, yet many investors don’t know much about their coverage nor how to take full advantage of the protections it provides.
What is Commercial Property Insurance?
Commercial property insurance is much like any other form of insurance. It is a policy taken out … Read More
A Guide to Investing in Commercial Distressed Properties
Commercial real estate presents a wealth of opportunities, but perhaps none offer potential returns equal to those of commercial distressed properties. For those who know how to identify promising distressed properties and purchase them, there are often substantial gains to be made.
If you’re still unfamiliar with this aspect of commercial real estate investing, here’s a guide to investing in commercial distressed properties.
What is … Read More
How to Determine the Highest and Best Use of a Property
Commercial real estate investors are generally familiar with appraisals, which seek to value a property accurately. Appraisals are used for home purchases, vacant land purchases, commercial real estate purchases, and the evaluation of most other properties.
The highest and best-use appraisal (HBU appraisal) is especially important in commercial real estate. This specific type of appraisal calculates property value according to how a property can be … Read More
What is Unlevered Free Cash Flow in Real Estate?
Real estate investments require evaluation from multiple angles and using multiple metrics. One metric that’s gained increased popularity in recent years is unlevered free cash flow (UFCF). This calculation provides a unique perspective on an investment’s financial performance, focusing on how much cash flow a property generates.
What is an Unlevered Free Cash Flow in Real Estate?
Unlevered free cash flow calculates the cash flow … Read More