The phrase “IRR” is frequently used by real estate sponsors to brag about the prospective profits of their projects. However, the majority of passive real estate investors are not completely versed in this lingo. An investment opportunity is frequently valued using the IRR measure, which is used to evaluate a deal’s internal rate of return. […]
IRR IN PASSIVE REAL ESTATE INVESTMENTS Read More »
Part I: Selecting the Sponsor Rich people are frequently urged to diversify and reduce risk in their portfolios by investing in non-traditional asset groups. Real estate is a generic example of an alternative asset class. A fantastic approach to generating passive income is through real estate investment. Because of its illiquidity, real estate is less
AN IN-DEPTH GUIDE TO REAL ESTATE SYNDICATION INVESTMENTS Read More »
The advantages of real estate investment are widely known, and they range from a tax efficiency and portfolio diversification to building up physical assets that not only provide cash flow but also increase in value over time. The foundation of any real estate investment plan should include income-producing properties, particularly commercial and multifamily assets. However,
TIPS ON FINDING THE BEST CITIES TO INVEST IN COMMERCIAL REAL ESTATE Read More »
Midway through March, the Federal Reserve Board agreed to increase interest rates for the second time in as many months. Therefore, the next logical question is, where will cap rates go from here? In addition, do interest rates tend to stay at this level? This boost will target the fund’s rate between 0.75 to 1
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This month marks the addition of a new sector to the S&P 500: real estate stocks. Real estate investment trusts (REITs) have evolved into their specialized niche within the broader financial services sector. And with that comes a large influx of capital into real estate, driven up demand by advisors and investors looking for diversification
REITS AND THEIR INFLUENCE ON CRE INVESTING Read More »
The consistent ebb and flow of supply and demand provide real estate an intrinsic worth in the world of investments. Commercial real estate has long been demonstrated to be one of the safest and most frequent investments throughout history. It has enabled millions of investors to achieve good returns, establish a stable cash flow, and
3 SOLID REASONS TO INVEST RIGHT NOW IN COMMERCIAL REAL ESTATE Read More »
Since interest rates are impossible to predict and can significantly affect a property’s value, they are one of the trickiest things to handle when investing in real estate. Borrowing money is an expensive proposition when interest rates are high. It can make a certain amount of money from a property, and all of it goes
7 METHODS TO AVOID THE IMPACTS OF RISING INTEREST RATES ON REAL ESTATE Read More »
The ratio of a property’s first-year Net Operating Income (NOI) to its purchase price is called a capitalization (cap) rate. For instance, an asset with a NOI of $80,000 and a purchase price of $1,000,000 has a capitalization rate of 8% ($80,000 divided by $1,000,000). This capitalization rate calculation may also be used reverse to
REAL ESTATE INVESTMENT – MUST KNOW FACTS ABOUT CAP RATES Read More »
How to Value Commercial Real Estate: Cap Rate vs. Return on Cost Numerous investors inquire about the capitalization rate (cap rate) at which we acquired a property. The issue is straightforward, but the solution is complex since real estate valuation cannot be reduced to a single statistic. We have bought properties with negative capitalization rates
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Introduction: There are numerous commercial real estate investing strategies. One of the more prevalent tactics is known as “value add.” While experienced investors commonly use this statement, it frequently confuses novices: is this method as simple as it appears, and how does an investor genuinely add value to a property? As a result, we’ll utilize
WHAT EXACTLY IS A VALUE-ADD REAL ESTATE DEAL? Read More »
