Revenue per available room (RevPAR) provides insights into property performance and profitability. Here’s a look at what RevPAR is, how to calculate it, and why you should know it if investing in hotel properties.
What is Revenue per Available Room (RevPAR)?
RevPAR is a performance metric used in the hotel industry to measure the average revenue earned per available room during a specific period.
Calculating … Read More
Applying for a commercial real estate loan is a multi-step process that requires a number of documents. Here’s what lenders generally need to see when approving and underwriting a loan for investment property.
What Commercial Real Estate Loan Documents Do You Need?
While lenders generally ask for a fairly standard set of information, the exact documents required can vary based on the lender, type of … Read More
The United States’ aging population is making senior housing an increasingly attractive real estate investment opportunity.
From 2010 to 2020 (census years), the percentage of 65+ adults in the U.S. grew at its fastest rate since 1880 to 1890. For everyone who missed the promising opportunity at the end of the 19th Century, the 55.8 million seniors age 65+ present another great time to consider … Read More
Multifamily residential real estate can provide substantial and fairly reliable returns, but almost no one purchases these properties as cash investments. Multifamily residential properties are usually instead financed with apartment building loans, of which there are several options. Here’s a guide to securing and using apartment building loans.
What Are Apartment Building Loans?
Apartment building loans are specialized financing products for the purchase, renovation, or … Read More
Whether buying and operating or building from the ground up, hotel financing revolved around the process of securing commercial real estate and developing a solid business model. This is often dependent on access to funding.
What is Hotel Financing?
Hotel financing refers to any type of lending related to the purchase, development, upgrading, or renovations of a hotel. These loans can help investors to meet … Read More
Any successful real estate investment requires understanding the profitability of said investment. While profitability can be ascertained several ways in real estate, yield is one of the most important ones if holding rental properties. A percentage-based figure, yield is one way to calculate a property’s returns against its value.
What is Rental Yield?
Rental yield shows the annual return a property generates through rent, as … Read More
Businesses in the hospitality industry derive the bulk of their revenue from room sales. One of the key metrics used to understand room revenues is the average daily rate (ADR). If you’re investing in a hotel, motel, bed and breakfast or other lodging, it’s vitally important that you understand how to calculate ADR.
What is the Average Daily Rate or ADR?
The average daily rate … Read More
There are some situations where purchasing the property that your business occupies can be lucrative in the long term. Other times, changing market conditions, a lack of due diligence, or unknown factors can make the investment a bad one. For a business owner, the inability to pay back their loan is a concern, and SBA loan default is not ideal. There are some ways to … Read More
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
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