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Properties Starved for Capital

One of the most straightforward, effective value-add deals to look for, acquire, and then reposition, is the asset that is starved for capital. Many times you can find well located real estate that is simply not performing because it requires an additional capital infusion. [...]

Betting on the Come

If you have played craps before you understand how the come bet works. I won’t try to explain it in detail if you aren’t familiar with the game, but when you hear the phrase it basically means that you don’t have what you need right [...]

My Case for Service Oriented Retail Real Estate

I think the single biggest opportunity for commercial real estate investors across the United States over the next decade will be in investing in service oriented retail shopping centers. When I say service oriented, I am referring to what investors in the industry call [...]

The Single Most Important Phrase in CRE

The single most important phrase in the real estate business is "You Make Your Money on the Buy." What that means is that the profitability of a deal is actually determined before you close on the property, not when you start managing it. [...]

Different Types of CRE Leases

I often get questions from current and prospective partners about leases. I wanted to write you this short email to tell you about the different kinds of leases we sign with our tenants. 1. Gross Leases In a gross lease, the tenant pays [...]

Understanding Management Intensity

The underlying principals of commercial real estate investment are pretty simple, you own a building, and tenants pay you rent to lease space from you. But what goes into being successful from a management standpoint, can vary drastically from asset to asset. On [...]

Understanding Pad Sites

One of our favorite retail value-add strategies is the pad site deal. A pad site is an out-parcel building lot located within or adjacent to another piece of commercial real estate. Think about banks or fast food restaurants in their own free-standing buildings in [...]

The Beauty of Illiquidity

From time to time, current and prospective partners often raise concerns about the illiquid nature of real estate assets. And while it is nice to be able to push a button and immediately convert an asset to cash, the fact that real estate, [...]

Going Outside of Your Backyard

Anyone who has spoken with me or read any of my work knows I am a major proponent of Real Estate being a local business. So what if an opportunity or market presents itself outside of your backyard? Should you stay away from [...]

Understanding the CAP Rate

In previous posts, I've discussed NOI or Net Operating Income. In case you missed it, your net operating income is the amount of income a property is throwing off after all expenses like taxes, insurance, utilities, and maintenance, but before debt service. Once [...]