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Commercial Property Due Diligence

Posted by: Elliot Barron in Real Estate Investment, Investment, Financing, Economy, Due Dilligence, Commercial Real Estate, Cap Rate, Analyze on Oct 08, 2008

Due Dilligence It happens all the time when you engage in acquiring a new property through contract, there is not much information about the property known at that stage. All you may know is the details of the financial statement and rent payroll or you've visually inspected the place by driving around the block. This is more than enough details to make a solid educated offer on the place but it does

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Gross Income Multiplier vs. Capitalization (Cap) Rate

Posted by: Elliot Barron in Real Estate Investment, Investment, Gross Income Multiplier, Due Dilligence, Comps, Commercial Real Estate, Capital Gains Taxes, Cap Rate, Analyze on Aug 29, 2008

If you are a real estate professional then you know about the gross income multiplier, GIM or the formula that determines the value of rental real estate. It has been used for decades. Breakdown of where $ goes

There are many schools of thought on how to determine the value of rental property but I always use my readings as a rule of thumb. Any real estate textbook will tell you not to invest in a property with a

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Profits Through Research and Due Dilligence in Commercial Real Estate

Posted by: Elliot Barron in Real Estate Investment, Landlord, Investment, Getting Started, Due Dilligence, Commercial Real Estate, Analyze on Aug 25, 2008

Due Dilligence One important aspect of due diligence is to know your documents but specifically understanding the details of the lease, insurance policy, and title policy. The lease, out of all of these is of utmost importance because it remains the roadmap for future events concerning the property. Part of the issue with the lease is language. There is a lot of strange stuff, interesting jargon

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Due Diligence Period for Commercial Properties

Posted by: Elliot Barron in Real Estate Investment, Investment, Due Dilligence, Commercial Real Estate, Analyze on Aug 20, 2008

For many the differences between Commercial real estate properties and residential properties can be daunting to define. It is all about assessing value. The value of a commercial property can be determined by setting an inverse proportion to the degree of risk inherent to the continuance and stability of the income stream from the property. Each type of commercial property has varying degrees

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An Alternative to Wraparound Mortgages

Posted by: Investors Lounge Online in Tenant, Subject To, Sub Prime Lending, Refinance, Real Estate Investment, Owner Will Carry, Over Leveraged, Mortgage, Market Bubble, Loan To Value, lease purchase, Lease Option, Landlord, Investment, Financing, Credit Cards, Analyze on Aug 14, 2008

There are different ways to structure real estate transactions that involve seller financing to benefit all parties. Of course the seller has concerns of protecting their property and the need for regular repayment. The following scenario explores this option in detail. Wraparound

You know that your local market has many rental properties in the inventory and you have found one that meets your

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Structuring Your Financing

Posted by: John Burrows in Refinance, Real Estate Investment, Mortgage, Investment, Financing, Equity, Appreciation, Analyze on Jul 28, 2008

Understanding the fundamentals of finance known as the time value of money is key in real estate investment. Such causes as inflation make the real value of a dollar less in the future than it is worth now. Because of this principle, buying property outright in cash does have its drawbacks, financially speaking, because another use of that cash may actually benefit the investor in the future

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Getting the Income Property For Your Money

Posted by: Alan Brown in Real Estate Investment, Market Prediction, Investment, Equity, Due Dilligence, Appreciation, Analyze on Jul 21, 2008

All investors including ones new to the playground know that the "golden grail" to succeeding in the real estate business is location. Location is the alpha and the omega of the real estate world. The common mistake is many assume that high-end prime location property is the be-all to end-all but that is simply not the case. Although those locations are often sought after they are not always

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Analyzing Your Investment

Posted by: Elliot Barron in Analyze on Jun 14, 2008

You can use one of a variety of approaches to analyze a real estate investment, or you can use a combination of approaches. It's just as important to choose the right way to analyze a property as it is to carefully pick the right property, since the wrong approach can mean lost profits. Below is an overview of different approaches used to assess the value and returns on a property, with notes

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Due Dilligence on Inspection

Posted by: Elliot Barron in Rehab, Real Estate Investment, Landlord, Investment, Inspection, Due Dilligence, Analyze on May 18, 2008

A smart way to purchase property without regrets after the sale consummates, is to put safe guards in your sales contract that give you a safety net. One of these nets is to always make any offer subject to a SATISFACORY property inspection. Now, whether you can perform this yourself or hire a professional, you still have a legal way of voiding the contract to purchase if something should be