Investor
How Does Commercial Real Estate Valuation Work?
Commercial Real Estate Valuation: Methods, Metrics, and What Sponsors Need to Know By Adam Gower Ph.D. Commercial real estate valuation primarily uses the income approach: Value = Net Operating Income (NOI) ÷ Cap Rate. For a property generating $500,000 NOI in a 5% cap rate market, value equals $10 million. The three standard approaches are…
Read MoreUnderstanding Real Estate Recapitalizations vs. Acquisitions
Real Estate Recapitalizations vs. Acquisitions: When Each Strategy Makes Sense By Adam Gower Ph.D. A real estate recapitalization restructures a property’s ownership and capital without selling it. The existing sponsor typically retains 10-30% ownership while new capital replaces or buys out existing investors. Unlike an acquisition where the seller exits completely, recaps let sponsors harvest…
Read MoreWhat Is the Optimal Investment Period for Real Estate?
What is the Best Hold Period for a Real Estate Investment? By Adam Gower Ph.D. Many of the most common questions that I receive from those learning the ropes of the commercial real estate business have to do with timing. Typically, it has to do with when to get in the market- and when to…
Read MoreWhy Savvy Real Estate Investors are Turning to U.S. Farmland
Why Savvy Real Estate Investors are Turning to U.S. Farmland* Real estate investors, novices and veterans alike, are often drawn to multifamily, office, retail and even industrial opportunities as these product types are relatively easy to grasp and understand. Investing in U.S. farmland is a bit more opaque. People are less familiar with how farmland…
Read MoreCommercial Real Estate Tax Lien Investing
Here’s What You Need to Know About Commercial Real Estate Tax Lien Investing Most of us do not like paying property taxes, but we do it. Why? Most likely because we do not want our properties seized by the IRS, state governments, or city and county authorities. When someone fails to pay their property taxes,…
Read More10 Mistakes Real Estate Investors Make
10 Mistakes Real Estate Investors Make Real estate can be an exciting investment. Many individuals hoping to get involved with real estate enjoy the prospect in their heads. While real estate can be an excellent investment, there are a number of mistakes and misconceptions that should be avoided in order to realize the best results…
Read MoreREITs Vs Rentals: What You Should Know
REITs vs Rentals: What You Should Know Are you looking for opportunities to invest in real estate but don’t know where to start? Here is what you should know about rental properties and REITs, the kind of income these investments can bring, and the responsibilities of such investments. Keep reading to find out which opportunities…
Read MoreThe Ultimate Guide to Real Estate Wholesaling
The Ultimate Guide to Real Estate Wholesaling One of the smartest ways to break into real estate investing is real estate wholesaling. Real estate wholesaling allows you to minimize risk and doesn’t tie up capital. But finding success in real estate wholesaling requires work, a solid understanding of the process, and learning the details of…
Read MoreUnderstanding Institutional Real Estate
Understanding Institutional Real Estate This article is based on a conversation I had with Mike Hu, Managing Director at Gaw Capital USA. A lot of people like to use the term “institutional real estate” in one form or another. They talk about “institutional-quality” assets, “institutional investors,” “institutional sponsors” and the like. Given how loosely the…
Read MoreInteresting Facts You Didn’t Know About Real Estate Crowdfunding
Interesting Facts You Didn’t Know About Real Estate Crowdfunding Real Estate Crowdfunding in 2020 Real estate crowdfunding was already on the rise in 2020, but industry insiders predict it to gather even more attention as a result of the COVID-19 crisis. As traditional sources of capital – banks, pension funds and the like –…
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