One needs to understand the various risk/reward profiles and the capital stack while doing due diligence. All investments in real estate eventually include either the land itself or the buildings situated on it. On the other hand, investing in real estate may be done in two distinct ways: via loan or equity. Understanding the distinctions […]
DEBT OR EQUITY? – WHERE SHOULD YOU INVEST YOUR MONEY? 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 »
Introduction: Can commercial real estate investors benefit from debt financing? Find out here! Returns on commercial real estate investments have been more difficult to earn as interest rates have risen, building expenses have risen, and property prices have risen. Real estate companies are moving beyond equity and into commercial real estate financing to provide predictable
HOW COMMERCIAL REAL ESTATE INVESTORS BENEFIT FROM DEBT FINANCING Read More »
Introduction: Do you want to know how the Internal Rate of Return can be manipulated? Check the answers here! What Does “Internal Rate of Return” (IRR) Mean in Investment Terms? Financial analysts use the internal rate of return (IRR) to indicate a potential investment’s profitability. In a discounted cash flow analysis, an IRR discount rate
INTERNAL RATE OF RETURN (IRR) MANIPULATION IN PRIVATE EQUITY Read More »
Introduction: Why is preferred equity an excellent commercial real estate investment? Find out the answer here! Preferred equity can provide a significant advantage to both sponsors and investors. Let’s go over how preferred equity works and the benefits it can offer. What exactly is preferred equity? Preferred equity provides active investors with additional funds to
PREFERRED EQUITY AS AN EXCELLENT COMMERCIAL REAL ESTATE INVESTMENT Read More »
Introduction: Real estate investments have the unique opportunity to generate income and appreciation. Here’s how: How Real Estate Investing Makes Money There are hundreds of advantages to investing in real estate, one of which is the unique opportunity to make returns through income and appreciation. In some cases, real estate investments can generate income while
HOW REAL ESTATE INVESTING MAKES MONEY Read More »
