|Educational

Understanding Debt Service Coverage Ratio

When analyzing levered (properties you acquire using debt) assets, one of the most important metrics to look at it something known as Debt Service Coverage Ratio. Debt Service Coverage Ratio (DSCR) is a ratio that tells you how much debt you need to [...]

A Fuse Burning at Both Ends

Great wealth has been grown and preserved by investing in commercial real estate assets, and one of those reasons is for what I like to call “the fuse burning at both ends” concept. Lenders love commercial real estate. It is a highly financeable, secured [...]

The 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 [...]

Are the Numbers Real

When you're making an offer on a property, you're usually working off of numbers provided by the seller and/or seller's broker. Doesn't this seem a little strange? A party with the complete opposite interest of yours is providing you with ALL of the [...]

Conducting Thorough Due Diligence

When you are purchasing something for several million dollars, it is incredibly important that you give yourself an opportunity to conduct serious due diligence on the isolated asset. At our firm, we have over a 100 point checklist of documents and items that [...]

Which Kind of Real Estate Investor Are You?

There are many ways to invest in real estate. Many asset classes. Many styles. Many locations. Etc. Savvy investors are able to generate return on investment in many unique niches. But ultimately, it comes down to two very distinct styles. 1. Buy and [...]

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 [...]

Understanding Building Classes

Typically, commercial real estate investors apply a simple, straightforward grading system to rate the quality, location, and other key characteristics of a building. The typical classes are A, B, and C. Building classes apply to all commercial product types, multifamily, retail, industrial, and office.What the "grade" [...]

Different Real Estate Investment Vehicles

REITs, Tenants In Common, Discretionary Funds, and Direct Deals 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 [...]

Giving a Break for Term

One of the most crucial valuation components to a piece of commercial real estate is the term left on the current tenancy's leases. It's a simple equation: Longer Terms = Higher Valuation While keeping a properties net operating income (NOI) as high as [...]