REITs vs. Private Equity: Understanding the Key Differences
What is a Real Estate Investment Trust (REIT) A Real Estate Investment Trust (REIT) is a company that owns, manages, or finances real estate to generate income. Because REITs are set up as companies, investors can get access to the income and profits made by the assets they own. In addition, a REIT is a […]
The 1% Rule in Real Estate Investing: Evaluating Properties for Positive Cash Flow
Commercial real estate investors need to do their due diligence when deciding on the best rental property investments. Fortunately, there are a lot of “rules” in real estate that can help guide you to good decisions. One of the most important guiding criteria for investing in real estate is the 1% Rule. Let’s take a […]
Investor Relations: Essential Strategies for Successful Capital Raising
Real estate investor relations are the lifeblood of your investments. Whether you’re an investment firm or a developer, it’s crucial to understand your investors’ goals and preferences to establish a solid relationship with them. So what is “investor relations”? In this article, we’ll uncover why investor engagement is essential and the best practices you can […]
How-To Guide on How to Raise Capital For Commercial Real Estate Properties
When deciding to invest in the largest asset class in the world, one of the challenging aspects of the industry is – #1 raising capital for real estate and #2 convincing investors that you can provide a solid return. Whether you’re a first-timer or an experienced general partner, understanding when and how to raise capital […]
Institutional vs. Non-Institutional Investors in the Commercial Real Estate Sector
Investing in commercial real estate has proven to become a stable and attractive alternative to showcase value and stability for investors. With access to deals through crowdfunding sources, non-institutional investors of all sizes now have quite the same opportunities as institutional entities to generate passive income, ultimately leading to wealth for the masses. Historically, non-institutional […]
What is a Commercial Real Estate Offering Memorandum
A commercial real estate offering memorandum (OM), also known as an investment memorandum or a private placement memorandum (PPM), is a tool used to introduce prospective buyers or investors to the property and is vital in presenting your sale opportunity, credibility, and professionalism. Offering memorandums are often used in apartment syndications and in various types […]
Guide to Understanding Commercial Real Estate Deal Structures
When it comes to commercial real estate investing, the majority of properties are acquired through various real estate deal structures that enable a group of investors to aggregate their funds to make a purchase, and understanding the differences between structure types will better enhance your pre-investment due diligence protocol. In this article, we’ll cover, in […]
What is Value-Add in Commercial Real Estate
Investments in commercial real estate can be grouped into multiple segments that are essentially categorized based on different aspects of the deal. Core (Core Plus), Value Add, and Opportunistic investing strategies are common terms used to describe these areas. Adding value is one of the investment philosophies to follow in the real estate industry when […]
What You Need to Know about Tertiary and Secondary Markets in Commercial Real Estate
Major cities like Los Angeles, New York, Chicago, and D.C. are often the focus of commercial real estate investors due to the fact that these primary markets are the center of commerce and populated hubs that offer excellent opportunities for sizable investments, reducing risk considerably. When it comes to investing in commercial properties, it would […]
102 Commercial Real Estate Industry Terms You Should Know
Below is a list of terms that are used regularly in the Real Estate Investing Industry. Capital Raise The process a business goes through in order to raise money, so the business can get off the ground, expand, or transform in some way. In a Syndication, this is typically a raise Investment Portfolio An investment […]
