The Benefits of Private Equity Commercial Real Estate Partnerships

Private equity commercial real estate partnerships offer excellent options for investors of all sizes, but the key is to select the right properties. There are many opportunities available in the commercial real estate market, and we have a proven system to identify the best investments and act fast to add these properties to the real estate [...]

Risk Managment in Commercial Real Estate

Risk management in commercial real estate investing exists on a spectrum. On one end, the safest investments have the highest prices and offer the lowest returns for real estate investors. For example, a single-tenant property leased to a national tenant may return ~5% annually but may sell for a premium because of its relative safety. On [...]

Should I Invest In Commercial Real Estate or Residential Real Estate?

In the real estate investing world, you have two core options: commercial real estate and residential real estate. Which one you should invest in is a long-debated topic that we could spend a lot of time on, but we'll touch on the general pros and cons to consider as you are becoming a real estate investor.  [...]

Understanding Net Operating Income

The first question out of my mouth when someone is presenting a deal to me is: "What's the current net operating income (NOI)?" Net operating income is the amount of income that a property is throwing off after all operating expenses like property taxes, insurance, utilities, property management fees, and maintenance are considered, but before debt [...]

Different Types of Commercial Real Estate Leases

We often get questions from current and prospective partners about the type of leases we use in our commercial real estate endeavors. Here is a quick look at the different kinds of leases we use with our tenants at various commercial properties in our portfolio.  Gross Leases In a gross lease (also known as a full-service [...]

Multifamily Investing in 2020: Attractive to Both Active and Passive Investors

Multifamily properties have proven to be a lucrative investment for several real estate investors as well as a point of diversification outside of the stock market for any well-rounded investment portfolio. Firms searching to find great multifamily deals is a trend that doesn't seem to be stopping any time soon. The opportunity for excellent cash flow [...]

Debunking the Commercial Real Estate Liquidity Myth

There’s a popular saying in investment circles that “cash is king.” For many, this means that an investment’s liquidity is of paramount importance, and it may be. Conversely, it also implies that a lack of liquidity is a bad thing, but we choose to look at it a bit differently. It’s common for commercial real estate [...]

Location in Commercial Real Estate: Why it Matters

Location: Why it Matters in Commercial Real Estate Let’s be blunt; if you’re not considering location when choosing a commercial real estate investment, your investment is probably going to suffer because of it. In his book "Good to Great", Jim Collins tells the story of Walgreen's incredible run from 1975 - 2000. There were instances where [...]

Non-Recourse Financing

When most real estate investors are getting started, they don’t have “hard money” for the investment. But even though you don’t have money in the bank to pay cash upfront for the investment, there are often financing options that can be leveraged. If you are looking for a loan for an investment opportunity, consider non-recourse financing [...]

Losing Money with Crowdfunding: What Would That Look Like?

Every investor has the intention to maximize profits when putting money into new ventures and projects. While there are many times when investments are successful, you also need to be prepared for potential losses as well. Losing money with real estate crowdfunding is something that is feared by many new investors. But you don’t have to [...]

Private Equity vs. REITs: Comparing CRE Investment Options

Investors seeking passive income and exposure to the commercial real estate sector are faced with a myriad of choices for their investment portfolios, one of which is whether to deploy their capital through a Real Estate Investment Trust (REIT) or through a Private Equity Real Estate Firm. Often, Private Equity Firms and REITs are confused for [...]

The Key to Sourcing Good Deal Flow in Commercial Real Estate

We often hear from partners, prospective partners, investment bankers, and venture capital firms: “How do you always find such great deals?” There are two important factors that influence deal sourcing in private equity deal flow: effort and work. The deals are out there; you just need to know where to look and how to find them. [...]

5 Things You Should Consider Before Investing Passively in Commercial Real Estate

Commercial Real Estate can be a fantastic investment because of the capability to have reliable, passive returns as well as the potential for upside in the commercial property purchased. This article considers that you are investing passively in a deal. If you are a real estate investor looking to be an active manager of commercial real [...]

Measuring Private Equity Real Estate Returns: IRR vs. Equity Multiple

In order to measure an investment’s return, it is necessary to use the right tools.  Yet, there are many variables that can complicate this task, exposing the deficiencies of each tool and causing them to either skew the results or to not tell the entire story. In commercial real estate investing, two of the most widely [...]

Why Business Owners Should Invest in Passive Real Estate Investments

Everyone has heard that Real Estate can be a great investment tool for building wealth and a secure financial future for you and your family. As business owners, one of the core issues we can find is that we’re just too busy building our main business to now begin researching, purchasing and managing a real estate [...]

Commercial Real Estate Opportunity Zones: An Investment Primer

Cities are exciting, vibrant places.  They’re teeming with energy and, while it’s not noticeable on a day to day basis, constantly in a state of change.  In some cases, change can be a powerful force that improves the lives of many. In others, it has the potential to leave a city’s most vulnerable residents and communities [...]

The Commercial Real Estate CAP Rate Trap

One of the most important metrics an investor looks at when analyzing the acquisition of a piece of commercial real estate is the CAP rate. The CAP rate is the property’s net operating income (NOI) divided by its hypothetical purchase price. It’s a straightforward way to figure out how many times “earnings” a property is being [...]

What Is Debt Service Coverage Ratio (DSCR)

When analyzing leveraged commercial real estate (properties you acquire using debt) assets, one of the most important metrics to look at is something known as the Debt-Service Coverage Ratio. The Debt-Service Coverage Ratio (DSCR) is a ratio that compares your net operating income to your debt obligations. Typically the higher the ratio, the lower the risk, [...]

Tax Implications of a Passive Real Estate Investment

The primary benefit of a passive real estate investment is that an individual investor can leverage the relationships, resources, and expertise of an experienced sponsor to gain access to a commercial-quality asset that they wouldn’t otherwise be able to invest in.  But, like any investment, there are tax implications – positive and negative – that should [...]

Signs You Should Avoid a Private CRE Deal

There is a common misconception that buying and managing commercial real estate is easy. It isn’t.  To be done correctly, a significant amount of resources need to be invested in the research and analysis of a property’s market and financial statements to ensure the transaction meets acceptable risk guidelines. For an individual considering an investment in [...]