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
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
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
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
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
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
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
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
Diversification has an important place in any long-term real estate portfolio. Commercial real estate offers one way to diversify if your portfolio is overexposed to small residential, and there are many opportunities to diversify within commercial real estate. One of the most effective is mixed-use commercial property.
What is Mixed-Use Commercial Property?
Mixed-use commercial property is a development that combines at least two different uses, … Read More
CAM charges are a common term seen on many commercial leases and in various transactions. It refers to the expenses the property owner charges back to the tenant for maintaining the specific area described. There are many factors to consider related to CAM, and understanding how this relates to any contract or lease agreement is critical prior to entering into such an agreement. Consider what … Read More