Commercial Real Estate Due Diligence: A Step-by-Step Guide for Investors
Commercial real estate due diligence directly impacts investment outcomes. Data shows that many investors find costly surprises after closing that proper research would have revealed earlier. The facts are straightforward: commercial lenders need properties to generate at least 20-25% excess income above debt service. Financial reports only tell part of the story. The standard 30-60 […]
Waterfall Distributions: Build Investor Trust Through Automation
Waterfall calculations are fundamental to real estate investment management, yet firms of all sizes often struggle with the complexities of calculating and distributing returns efficiently. At InvestNext, we’ve spent the last eight years meticulously refining our platform to optimize this critical process. This commitment allows us to continue providing firms of all sizes with the […]
Redemption Requests & Rising Interest Rates: Navigating Challenges for Mid-Sized Funds
Today’s commercial real estate market, it’s not just small-mid sized funds that are facing significant liquidity challenges due to high investor redemption requests and rising interest rates.Starwood Capital Group’s $10 billion Starwood Real Estate Income Trust (SREIT) is a prominent example, having nearly exhausted its $1.6 billion line of credit and limited redemptions since 2022. […]
Navigating the Complexities of K1 and Real Estate Taxation: A Comprehensive Guide
A comprehensive guide on Schedule K1 for real estate syndication, exploring the complexities of taxation in real estate investments.
How to Find Hard Money Lenders for Real Estate
When delving into the realm of real estate investment, it’s crucial to familiarize oneself with various financing options, one of which is hard money lending. In this section, we will explore the definition, characteristics, and the mixed bag of benefits and drawbacks associated with hard money lenders. Definition and Role in Real Estate Investment Key […]
What is a 30-Year Fixed Commercial Mortgage Rate?
Many lenders decide their interest rates by following the “index” rates. These rates are managed by national groups such as the US Federal Reserve and the US Department of Housing and Urban Development, also known as HUD. This means that commercial mortgage rates change every day, and because there’s more risk involved, the interest rates […]
Calculating Capital Gains Tax on Commercial Real Estate Property
Investing in real estate can be a great way to build wealth over time. However, it’s important to understand the tax implications of your investments. If you’re new to real estate investing or want to brush up on your tax knowledge, this article will cover the basics of calculating capital gains tax (CGT) on your […]
The Ultimate Guide to Understanding Commercial Property Management Fees
When it comes to commercial real estate syndications, it is important to understand the compensation levels associated with the active deal in mind. As a sponsor, you want to be clear and transparent with the offering and the fees associated so that your investors are well-informed in their due diligence when committing to funding the […]
Choosing the Right Deal Structure for Real Estate Syndication
Syndication Deal Structures The syndication structure of any real estate deal is essential to putting together a successful transaction. The reason for this is that the more organized the agreement, the less risk there is that something will go wrong at closing or in future property ownership. While no two deals are exactly alike, and […]
