Commercial Real Estate Basics

These blog posts are designed for beginning commercial real estate investors or those seeking to learn more about investing in commercial 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 Top 7 Commercial Real Estate Commandments

I wanted to share with you what I like to call the "Seven Commercial Real Estate" Commandments: 1. Commercial real estate is a local business There is no substitute for local market knowledge. Local operators will outperform investors who do not intimately understand the market. 2. Commercial real estate is a full-time business There is no [...]

Part Time Real Estate Bad Business

I know many people who were successful in other industries who parked much of their wealth into real estate assets and built tremendous net worth. Usually, though, this is the exception, not the norm. Most people who come into the real estate business do not have the right expectations of what it takes to be successful. [...]

An Investors Guide to Commercial Real Estate Building Classes

When you are preparing to invest in a new venture, commercial real estate building classes can be helpful in providing information about the property. This grading system is both simple and straightforward, giving investors details about the location, quality, and other key characteristics of the building. Three Categories: Commercial Real Estate Building Classes The building classes [...]

Different Commercial Real Estate Investment Vehicles

For passive investors, finding the right way to expose yourself to the real estate asset class can be confusing. You might hear many different terms or buzz words - REITs, TICs, LLCs, Funds, Private Equity, Notes, Debt Funds. The question many investors ask is "What's the difference between all of the available commercial real estate investment [...]

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. The purchase price of an asset is the single most important factor in [...]

Understanding Pad Sites

Business owners looking for a new location sometimes find that the retail space in strip malls or shopping malls isn’t a good fit for the needs of the company. As a result, commercial real estate pad sites can be an effective solution to allow business owners the opportunity to choose a different size or style of [...]

The Beauty of Commercial Real Estate 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, and other non-traded assets, are illiquid, is what makes them superior to traded [...]

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 it? No. Absolutely not. Real Estate needs to be managed, leased, and handled [...]

Understanding Value Added CRE Deals

I’d like to share with you one of the great strategies that sophisticated commercial real estate investors utilize to generate significant risk-adjusted returns. It is the backbone of our investment strategy and the predominant strategy we utilize in our private equity real estate funds. It's called: "The Value Add" Value-added transactions are all about transforming a [...]

The Human Element of the Real Estate Business

As active Real Estate investors, we spend a tremendous amount of time searching for, and ultimately analyzing deals. We look at gross income, and the dozens of different expense line items. We analyze the amount of capital a building will need over the next ten or so years to account for new roofs, HVAC systems, and [...]