Estimating a commercial property’s potential income involves more than simply multiplying the monthly rent by twelve. This basic calculation overlooks additional income streams and potential costs, making it an incomplete reflection of the property’s true revenue...

A commercial cash-out refinance allows property investors to access the equity tied up in their real estate, which would otherwise remain illiquid. While selling the property is one way to unlock equity, refinancing offers an alternative with several potential...

When evaluating investment properties, understanding vacancy rates is essential. This metric reveals how frequently units remain unoccupied and for how long. It also offers insight into the property's management efficiency and overall desirability. For those...

Multifamily investors and developers utilizing Low-Income Housing Tax Credits (LIHTCs) must adhere to specific regulations regarding how they use the land or develop their projects. One key requirement of LIHTCs is compliance with rent limits for a designated period,...

Earnest money is not always required in commercial real estate transactions, but it is a common element in most agreements. This guide explores what earnest money is, how it functions, and whether it can be refunded.   What is Earnest Money? Earnest money is a deposit...

An assumable loan is a financing option that allows a buyer to take over the existing loan of a property from the current owner. This type of loan structure enables the new owner to step into the existing debt arrangement rather than securing a new loan upon...

For commercial real estate investors, particularly developers, understanding the floor area ratio (FAR) is crucial. This metric plays a key role in maximizing property usage while adhering to zoning regulations. Below is an overview of what FAR is, how it is...

What is a Rent Roll and How is it Used? A rent roll is an essential document in commercial real estate, offering a detailed overview of a property's rental income and tenant information. Investors and lenders rely on it to assess a property's financial stability and...

The operating expense ratio (OER), also referred to simply as the expense ratio, is a key metric for property owners and commercial real estate investors. It measures the proportion of a property's operating costs relative to its income, offering valuable insights...

Commercial ground rent is a key concept in property ownership, offering unique opportunities for both property owners and tenants. While the specifics of these arrangements can vary, the core principle remains the same: the landowner retains ownership of the land,...

A partially amortized loan is a commonly used tool among commercial real estate investors due to its unique advantages. While all loans amortize to some extent, whether they are commercial or not, they generally fall into two main categories: fully amortized and...

Real estate syndication is a collaborative investment strategy that enables multiple investors to pool their resources to acquire properties that might be out of reach individually. This approach allows investors to benefit from shared expertise, economies of scale,...