In private real estate investing, a preferred return is the minimal rate of return an investor must obtain before an investment manager may earn a performance fee. In real estate investing, the recommended return is often between 6 and 9 percent, depending on the risk of the venture. You may think of this as an […]
A GUIDE TO PREFERRED RETURN IN PRIVATE REAL ESTATE INVESTING Read More »
Not all commercial real estate properties are alike. Investors must evaluate if a new luxury building with cutting-edge architecture, opulent materials, and lavish facilities is a better investment than an older property that was previously similarly important and has a proven track record of success. As a result, a well-known property categorization system categorizes structures
WHAT DO CLASS A, B, AND C TERMS IN REAL ESTATE INVESTING MEAN? Read More »
However, value-added and opportunistic juicing increases risk. Therefore, allocation at the optimal moment is essential. In Part 1, we discussed the core and core+ strategies that serve as the foundation of a diversified real estate portfolio. In the second part, we will examine value-added and opportunistic tactics that boost returns. Finally, we will cover the
4 GREAT TACTICS IN COMMERCIAL REAL ESTATE INVESTMENT (PART2) Read More »
Core and core plus are the foundation of a diversified portfolio and services to mitigate risk. Understanding the four real estate investment methods is vital since it is the only way to comprehend your risks and build a diversified, secure portfolio. These are the four methods: Core: 7 to 11% historical returns with little to
4 GREAT TACTICS IN COMMERCIAL REAL ESTATE INVESTMENT (PART1) Read More »
Underestimating the danger of debt is one of the most frequent errors investors make when analyzing a real estate equity transaction. Investors tend to concentrate on the upside of transactions, examining the stated projected internal rate of return (IRR) or equity multiple, without appropriately measuring and adjusting their return demand for the risks assumed. But
HOW TO MEASURE REAL ESTATE INVESTMENT DEBT RISK USING WACC Read More »
The Qualified Opportunity Zone (QOZ) scheme is perhaps one of the most significant tax reductions real estate investors will ever encounter. Tax Cuts and Jobs Act of 2017 be eligible opportunity zones were established to encourage economic growth and job creation in economically disadvantaged areas.” A person who invests in one of the Qualified Opportunity
ELIMINATE CAPITAL GAINS TAXES USING QUALIFIED OPPORTUNITY ZONES Read More »
Introduction Like many people today, you’ll recognize this financial predicament. You have savings that you want to invest in or already have money in the market. However, your broker or adviser has only ever discussed two asset types with you: stocks and bonds (and maybe a few others, if you’re fortunate). If you’ve never considered
STOCK MARKET VS. COMMERCIAL REAL ESTATE: WHICH IS BETTER? Read More »
Real estate syndications employ ‘waterfalls’ to structure and recompense principals and investors, and once a developer constructs a framework that works for them, they are seldom changed. However, there are a wide variety of waterfall designs, and this article analyzes the most popular and the most intricate. In its simplest form, a waterfall shows how
THE SIMPLER THE REAL ESTATE WATERFALL, THE BETTER Read More »
Real Estate Cycles: The Local Cycle – Part 4 of 4 By analyzing property type and geography, incorrect investment decisions may be avoided. In this fourth and last edition of a four-part series, we will analyze where we are in the cycle and how you may use this information to make investment choices. Part 1:
THE LOCAL CYCLE IN REAL ESTATE Read More »
After ten years of consistent economic expansion and low-interest record rates, it is not surprising that inflation is starting to climb in the United States. In light of the likelihood that inflation will continue to rise, it is essential for commercial real estate investors to comprehend the causes of inflation, how it affects commercial real
THE IMPLICATIONS OF RISING INFLATION FOR REAL ESTATE INVESTORS Read More »
