Due to their consistent income, absence of management worries, and stable tenants, build to suit triple net (NNN) leases are particularly tempting to investors wishing to diversify their portfolio with a reliable investment. And employing capitalization rates is one of the most popular and significant methods for valuing these builds to suit NNN lease assets. […]
HOW TO MEASURE BUILD TO SUIT DEVELOPMENT CAP RATES Read More »
I’ll tell you right now that cap rates are one of the most commonly used terms in real estate and one of the most misunderstood. Even though it’s widely used, I’m constantly surprised by how little people understand cap rates. If you ask ten brokers, “what is a cap rate?” they might give you a
GUIDE TO UNDERSTANDING CAP RATES WHEN INVESTING IN REAL ESTATE Read More »
Value Investing isn’t just for stocks. Yes! That is right. This concept can also be applied to real estate. What this does is we pick up stocks, assets, and properties for a lower price than what it is originally worth. It is a great idea especially for beginners as it is quite simple to learn,
VALUE INVESTING: IT’S NOT JUST FOR STOCKS Read More »
Net Operating Income Understanding Net Operating Income There are numerous relevant metrics in commercial real estate, but few are more important than net operating income (NOI). The NOI is used to demonstrate how much revenue a certain investor would be expecting to get from a project. It is a comprehensive figure that considers all revenue
8 FINANCIAL PRINCIPLES IN REAL ESTATE INVESTMENT Read More »
This episode will teach you about the crucial idea of the CAP RATE, which stands for ‘capitalization rate.’ Building value may be influenced by the cap rate, which is determined by taking the net operating revenue and dividing it by the building’s cost. Prices rise when cap rates fall, and to learn more about the
CAP RATE IN REAL ESTATE INVESTING EXPLAINED Read More »
When starting on real estate, it is understandable to have various assumptions regarding the matter. Whatever the concern might be, just remember it can go both ways. Various trends in real estate often change, and it is highly possible that what you wanted will not necessarily be the outcome. Real estate has always been a
ANALYSIS OF ASSUMPTIONS IN REAL ESTATE Read More »
Unlike stock transactions, real estate closings are different. Planning, carrying out and conducting the essential research take weeks or months. The lack of a sell option to cancel a bad purchase is a greater issue. Real estate buyers must accept the effects of their actions since they are unable to change them. Considering all of
5 WAYS ON HOW TO AVOID ERRORS THAT MOST ALL REAL ESTATE INVESTORS MAKE Read More »
Infrastructure costs and lead times for multifamily projects have increased due to rising building material prices. Steel, concrete, and gypsum products are growing at a record rate, and supply chain delays are lengthening project deadlines. Commodity prices for copper and timber reached 10-year highs in May 2021 and are still hovering in record ranges. Although
WHY SHOULD YOU INVEST IN MULTIFAMILY REAL ESTATE DEVELOPMENT NOW? Read More »
To determine the worth of a single-family house, all one needs to do is look at recent sales in the area. But what about a business property if there aren’t any nearby structures like it? How can investors determine the worth of these special qualities with accuracy? Investors don’t use market comps to estimate the
HOW TO APPLY THE COMMERCIAL VALUE FORMULA TO REAL ESTATE Read More »
The operational costs of a business facility are heavily influenced by property taxes. Failure to comprehend and budget for these costs as a landlord or investor can severely reduce your net operating income (NOI). Additionally, a commercial property’s value declines as NOI declines. To better comprehend property taxes in commercial real estate, we will utilize
COMMERCIAL REAL ESTATE PROPERTY TAX INTERPRETATION Read More »
