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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

Understanding Loss to Lease in Multifamily Property

Loss to Lease

Real estate investors must consider how much rent they can charge for a property prior to investing in the property. However, there is often a difference between what this estimate is and what the actual rent earned occurs. This is called the loss to lease, or LTL. It is an important calculation for all property investors to consider.

What Does Loss to Lease Mean?

Loss … Read More

What is Before Tax Cash Flow (BTCF) in Property Investment?

Before Tax Cash Flow

Before tax cash flow (BTCF) is a metric all commercial real estate investors must understand. It provides an analysis point that can be essential in understanding the potential cash flow a property can produce. It is one of numerous metrics considered before investing in real estate.

Understanding Before Tax Cash Flow (BTCF)

BTCF represents the cash flow the real estate investor will attain after paying … Read More

How to Calculate Occupancy Rate: Formula and Calculation

How to Calculate Occupancy Rate

Occupancy rate is a metric that helps real estate investors and managers assess a property’s performance and pricing. Here’s a guide to understanding occupancy rates for hotels and similar properties, including how to calculate it and what can be learned from it.

What is Occupancy Rate in Commercial Real Estate?

Occupancy rate is a standard metric used within the hotel industry, and it’s also useful … Read More

How to Sell Commercial Real Estate: 5 Tips

How to Sell Commercial Real Estate

Selling commercial real estate is significantly different than selling residential property. Though the process of transferring real estate from person to person may be similar, there are numerous other factors owners must take into consideration before simply deciding to list their commercial property for sale, including understanding their target buyer, what type of property they are selling, and the value of the property.

How Long … Read More

RevPAR Formula: How to Calculate Revenue Per Available Room

RevPAR Formula

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

Commercial Mortgage Documents: What Do Lenders Look For?

Commercial Mortgage Documents

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

Investing in Senior Housing: Is It Worth It?

Investing in Senior Housing

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

A Comprehensive Guide to Apartment Building Loans

Apartment Building Loans

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