Crowdfunding for Real Estate The COVID-19 situation, according to industry experts, would boost interest in real estate crowdfunding, which already rose in 2020. As conventional sources of financing, including banks and pension funds, start to withdraw their support, real estate sponsors are looking for new ways to raise money for their projects. Crowdfunding for real […]
REAL ESTATE CROWDFUNDING FACTS YOU MUST KNOW Read More »
Many investors think they understand financial terminology like preferred equity, but they may each be thinking of something different, which can cause confusion and misunderstanding. This article defines preferred equity and explains how to discern the difference between the various types. Preferred Equity Definition Preferred equity works similarly to preferred stock in the corporate sector
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Why Are Bridge Loans So Popular Nowadays? A two-phase transaction is required today when purchasing a new house, which worries many homeowners. It is because they had to sell their old homes to buy new ones. Fortunately, a bridge loan makes it possible for homeowners to buy a new residence or piece of land before
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The Function and Uses of Mezzanine Financing Mezzanine financing combines equity and debt. In the event of a default, it allows a lender the choice to convert debt into ownership in the company. This conversion typically takes place following payment to senior lenders, such as venture capital firms. In terms of exposure, mezzanine financing has
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Just like the title asks: Which is better? Private equity-owned real estate OR publicly traded REITs? Well surprisingly, the answer is BOTH. Yes, that is right, both are needed by strong portfolios. There really is the better deal in this case as they can give similar yet varying results, and oftentimes they work very well
PRIVATE EQUITY-OWNED REAL ESTATE VERSUS PUBLICLY TRADED REITS Read More »
Are you trying to figure out where to begin investing in real estate but aren’t sure where to start? What you need to know about rental properties and REITs, the income they can bring, and the obligations that come with these investments are shown in this guide. Get the most out of your time and
WHAT YOU NEED TO KNOW ABOUT REITS VS RENTALS Read More »
Understanding the motivations of the parties involved in a real estate transaction is critical when evaluating a new sponsor. Investing in real estate is a passion for great sponsors. They will be able to properly communicate the benefits and drawbacks of the opportunity and show that they are specialists at creating value through real estate
SIGNIFICANCE OF SPONSOR FEES IN REAL ESTATE Read More »
Comparing Real Estate Equity to Real Estate Credit is important for investors to understand so that they may deploy their portfolio assets wisely. Credit in the real estate industry is borrowing. Loans made by investors in real estate debt are a form of indirect equity investment. To have equity in a property means to own
REAL ESTATE INVESTMENT: CREDIT VERSUS EQUITY Read More »
The function of financing in the successful completion of a commercial real estate transaction is crucial. Commercial real estate transactions, however, can access a wider variety of funding choices than their residential counterparts. This abundance of choices can be daunting for inexperienced investors. Investors may not know which sources of financing are best when underwriting
DIFFERENTIATING PREFERRED EQUITY VS JOINT VENTURE EQUITY Read More »
Interest-only commercial real estate loans have a monthly debt service fee that they must pay. This sum represents the interest that has accrued on the loan’s principal. Debt servicing entails principal and interest payments to the lender. “principal” refers to the total amount borrowed, while “interest” refers to the cost associated with that loan. Debt
PROS AND CONS OF INTEREST-ONLY COMMERCIAL REAL ESTATE LOANS Read More »
