Why is it important to understand Cap Rates in Commercial Real Estate?
Capitalization rate is a metric used in the valuation of a real estate investment. It is calculated by dividing Net Operating Income by the Current market value (sales price) of the asset. Cap Rate = NOI/Current market value (sales price) of an asset. Capitalization rate is an important factor in the real estate industry because […]
Commercial real estate or Residential real estate, what to choose?
Considering diving into the world of real estate investment? Let’s talk about a critical decision you need to make before making that big move: commercial real estate (CRE) or residential real estate? Each has its own set of advantages and disadvantages, and reading the fine print will be your hidden weapon for savvy investment. Are […]
DSCR- Its importance for lenders
The debt service coverage ratio is one of the metrics used to measure debt capacity wherein it measures the company’s ability to repay its loans, take on new financing and make dividend payments. It is a benchmark usually used to comprehend an entity’s ability to generate funds to cover their debt payments. A higher ratio […]
The role of location in Commercial Real Estate
Location is one of the most prominent factors to consider when looking at a potential CRE investment. Why is it so important? Because property access, zoning, environmental safety, etc. – all depend upon it. These factors play a major role not only in the operations of the property but also during the liquidation of the […]
Grocery Anchored Retail Properties: The why’s and the how’s!
For many years, grocery-anchored retail properties have stood as a fundamental pillar in the realm of commercial real estate. These properties serve as vital community centers where individuals procure their everyday essentials and more. Grocery-anchored retail properties represent CRE developments distinguished by their primary anchor tenant, often a sizable supermarket or grocery store. These properties […]
Why Recession may not be bad for Real Estate?
Everyone seems to be afraid of the looming recession owing to an upward pressure on the interest rates and justifiably so, but is it all that of a bad news? Perhaps not! Let us discuss the potential upsides to the rising interest rates, especially in the real estate industry. Increases in the interest rate will […]
Importance of Due Diligence in Real Estate Investments
A comprehensive due diligence in real estate investments is a necessary risk management strategy that should be considered by all real estate investors. Due Diligence is arguably the most important step an investor would take before closing the deal. Even if a property looks good at the surface level, there may exist reasons why it […]
How Real Estate can help you generate passive income!
The current economic environment which is inflationary and recessionary has made it necessary for people to have more than one source of income and what could be a better way to do that than make that money passively. Herein we’ll discuss how real estate can help you create a passive income and a lucrative one […]
Why do some classes of Multifamily perform better than others during Recession?
The hot topic of the hour is Recession, and while it may or may not be imminent, it is but necessary to put your heads together about the approach that might be feasible to take in the event of a downturn. Let us delve into the Multifamily space today! Consumer decisions are heavily inspired by […]
Deals v/s Funds: Which to choose?
Real estate has always and traditionally been seen as a sound investment, with the potential for both long-term growth and consistent revenue streams. Usually, investors might enter the real estate market through one of two methods: investing directly in individual properties or purchasing shares in real estate funds. However, each strategy comes with its own […]