You’ve seen the news headlines about real estate crowdfunding and how it is changing the commercial real estate industry. In this article we’ll cover real estate crowdfunding in depth and give you a solid overview of what is possible with crowdfunding real estate investments and also where you need to be cautious. Note that this …
Often commercial landlords have clues that a tenant is going to be filing for bankruptcy. Rental payments are often late several months in a row. Sometimes the tenant falls more than a month behind on the rent. But, it can still be shocking when a landlord opens the mail and instead of a rent check …
The Net Present Value (NPV) is one of the most important and widely used concepts in finance and commercial real estate. In this article we’ll take a deep dive into NPV, discuss how it’s used in commercial real estate and finance, and clear up some common misconceptions. What Is Net Present Value (NPV)? Net Present …
In finance and commercial real estate it’s simply expected that you know how to use a financial calculator. Yet, it’s surprising how many commercial real estate and finance professionals still don’t know how to properly use a financial calculator. Sometimes it’s because they didn’t learn it correctly the first time, and other times it’s because they …
What’s the difference between a recourse vs. non-recourse loan? In commercial real estate both types of loans are common depending on the stage and type of financing. In this article, we’ll take a closer look at recourse and non-recourse commercial real estate loans, as well as the “bad boy guaranty.” What is a Recourse Loan? …
In commercial real estate, a common lease structure is the triple net lease, often abbreviated as “NNN Lease”. Despite its popularity, the triple net lease structure is still commonly misunderstood. In this article, we’ll take a deep dive into the triple net lease and clear up the misconceptions. What is a Triple Net Lease (NNN)? …
The operating expense ratio provides a lot of useful insight into a commercial property analysis, but it’s not as widely used as it ought to be. The operating expense ratio is a simple ratio that’s easy to calculate and in this article we’ll take a closer look at how to calculate the operating expense ratio, …
In commercial real estate the tenant estoppel often comes up during the due diligence phase of an acquisition or during the underwriting of a loan. What exactly is a tenant estoppel and how does it work? Let’s dive in and take a closer look at the tenant estoppel. What is a Tenant Estoppel? What exactly is …
Typically an interest rate is given as a nominal, or stated, annual rate of interest. But when compounding occurs more than once per year, the rate of interest actually realized will be higher than the nominal rate of interest. This actual, realized rate is known as the Effective Annual Rate (EAR). In this article we’ll …