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The Real Estate Proforma: A Beginner’s Guide

The first task in any real estate investment decision is to build a proforma, which [...]

The Cap Rate: What You Should Know

The capitalization rate is a fundamental concept in the commercial real estate industry. Yet, it [...]

How a Broker Price Opinion Works

The broker price opinion (BPO), also known as a broker opinion of value (BOV), is [...]

Net Operating Income (NOI): A Beginner’s Guide

Understanding Net Operating Income (NOI) is essential in commercial real estate. Without a firm grasp [...]

Difference Between Market Value and Investment Value in Commercial Real Estate

Value is traditionally defined as the power of a good to command other goods or [...]

Apartment Investing Case Study

In this article we are going to conduct an investment analysis on a 140 unit [...]

Internal Rate of Return (IRR): What You Should Know

The internal rate of return (IRR) is a widely used investment performance measure in finance, [...]

Time Value of Money: A Beginner’s Guide

Being completely comfortable with the time value of money is critical when working in the [...]

Understanding Replacement Reserves in Commercial Real Estate

The topic of replacement reserves is often confusing for commercial real estate professionals. How much [...]

What is a Tenant Estoppel and How Does It Work?

In commercial real estate the tenant estoppel often comes up during the due diligence phase [...]

Commercial Real Estate Closing Process: The Definitive Guide

When it’s time to close on a commercial real estate transaction, the process can seem [...]

Debt Service Coverage Ratio (DSCR): A Calculation Guide

The Debt Service Coverage Ratio, often abbreviated as “DSCR”, is an important concept in real [...]

How to Calculate The Debt Yield Ratio

The debt yield is becoming an increasingly important ratio in commercial real estate lending. Traditionally, [...]

How to Navigate the Real Estate Eviction Process

How do you feel about a criminal conviction on your record? Defending against a civil [...]

How Market Leasing Assumptions Work in Commercial Real Estate

Market leasing assumptions define what happens after a tenant lease expires in a commercial property. [...]

Essentials of Tenancy in Common (TIC)

What is a tenancy in common (TIC)? What are its characteristics? Its advantages and disadvantages?

The Essentials of Commercial Real Estate Sale and Purchase Agreements

A commercial real estate sales contract can be one page or one hundred pages. There [...]

The Definitive Guide to Understanding Section 8

Created to help low-income, elderly, and disabled households afford decent, safe and sanitary private housing, [...]

A Complete Guide to the Low-Income Housing Tax Credit Program

To a developer, affordable housing means lower rents than a market-rate project, lower net operating [...]

Why Is Real Estate Market Analysis So Important?

Many real estate investors fail to recognize the importance of the market analysis. Whether they [...]

Getting Started with Real Estate Market Analysis

A detailed market analysis is key to any real estate investment decision. Even though the [...]

How to Analyze Supply and Demand For Apartment Buildings

One of the most important ways to use all of the data gathered in a [...]

How to Calculate the Cap Rate

The cap rate is an important concept in commercial real estate, and it is widely [...]

How To Determine The Highest and Best Use of a Property

The concept of highest and best use is one of the fundamental principles that underlie [...]

The Income Approach to Real Estate Valuation

The income approach is one of three techniques commercial real estate appraisers use to value [...]

How The Loss to Lease Calculation Works

Loss to lease is a commonly used calculation in a commercial real estate analysis. However, [...]

Eleven Types of Risk in Commercial Real Estate

Every investment involves a certain amount of risk. There are certain general sources of risk [...]

Three Types of Commercial Real Estate Obsolescence

One of the unique challenges of commercial real estate investment is that markets, types of [...]

What is a Rent Roll?

When real estate investors are evaluating a potential rental property purchase or a bank is [...]

Understanding The Right of Offset

It is very common for a lender to require a borrower to open a checking [...]