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 […]
How to Underwrite in Commercial Real Estate
Commercial real estate is by far the world’s largest asset class and is considered the most valuable investment vehicle over stocks, shares, and bonds combined. In the U.S. alone, the market is valued at $70.1 trillion, and as more and more investors find themselves involved in the real estate investing mix. However, in order to […]
Ultimate Commercial Real Estate Underwriting Steps
Real estate investments have risen dramatically in the recent decade, providing profitable ROIs and capital appreciation. By far, the most profits have been witnessed when it comes to commercial real estate. However, it isn’t quite as simple as throwing some money into a project and hoping for a return. To get the most out of […]