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 »
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 »
Traditional estimates vary between 13 and 26 percent. However, recent evidence indicates that more may be prudent. Actively Campaigning Google If you Google this query, you won’t get many results. Over a century ago, direct real estate investment was restricted to country club members alone. The typical accredited investor gained access to real estate crowdfunding
WHAT PROPORTION OF REAL ESTATE SHOULD I OWN IN MY PORTFOLIO? Read More »
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 »
