There is No Simple Formula for Identifying a Deal… “It All Just Depends”
Those interested in investing in real estate often ask the question, “How do you know whether a specific investment is a good investment?” Many investors may state that they have a formula that they abide by – They may look at lease length, city, location, tenant financial strength, local economic strength, tenant guarantee, demographic information, etc. […]
How Interest Rate Factors Impact Different Type of Loans
In a recent article, I outlined the various factors that impact interest rates. Understanding those factors is important, but as we mentioned in the article, not all lenders are the same. You might remember that I even suggested that investors ought to shop around before committing to a specific lender; or the very least utilize […]
Crowdfunded Real Estate and the Growing Personal Connection
The power of the long-term real estate investor’s mindset is building real wealth over time with minimal risk. This is done by placing reputations and relationships first because real estate investing is just as much about people, as properties, and returns. Back in 2013, the real estate investment world transformed. The Jumpstart Our Business Startups […]
3 Reasons Why The Best Deal is Often No Deal
As an investor you will look at hundreds, if not thousands, of deals in your career. This can be a daunting task. Furthermore, as you look at each deal, the marketing package will display the benefits of acquiring the asset; and, if you have been seeking a deal for an extended period of time, you […]
Buy the Position, Not the Return – Warren Buffet’s Style of Investing in Real Estate
A common saying I hear in the equity markets is this: “Buy the position, not the return” The idea is that every investment is a bet on the strength of the asset. When considering where to put your money, the value of the asset is more important than the return next week, next month, or […]
3 Numbers you can Use to Evaluate Real Estate … No Matter the Deal Size
Many real estate investors hesitate to expand their investments from single family houses into apartment buildings, and commercial properties. The sheer size of the undertaking can be intimidating. How do you even begin to evaluate a property of that size? Evaluating the physical characteristics of the property (structural elements, utilities, a deferred maintenance plan) may […]
An Introduction to the IRR metric
IRR can be extremely useful because it can be utilized to compare different types of investments, even if they have different cash flows, capital requirements, and timelines. Analysists use a metric called internal rate of return (IRR). IRR calculates a kind of “reverse interest rate” called the discount rate, which makes the net present value […]
Explained: Different Types of Real Estate Investments
Many new real estate investors understand the difference between “buy-and-hold” and “fix-and-flip.” These are both real estate investment strategies, but they don’t comprehensively describe the different options available to you as an investor looking to put money in the real estate business. In fact, the menu of options can quickly become intimidating. Let’s boil it […]
A Macroeconomic Outlook on the Impact of COVID-19 and It’s Correlation to Commercial Real Estate
Since COVID-19 was first diagnosed, it has spread rapidly across the globe, impacting over 200 countries and killing hundreds of thousands of people. The consequences of the pandemic, including forced closures, social distancing, and restrictions in distribution, have all had an effect on the global economy. The impact of the pandemic was prevalent from the […]
A Key Variable In The Long Term Real Estate Investment Strategy – The Reserve Fund
When you first acquire a real estate asset, you venture into the world of property management – that means you will need to learn and understand how a property is maintained, and more importantly, how much capital you need to ensure that your property continues to have the ability to operate. This cash is known […]