How a Master Lease Can Earn You Millions
Monday, April 04
A master lease is a valuable tool for an investor that could allow an investor to demonstrate increased income and obtain optimal financing. A master lease is a single lease that covers multiple properties leased from a landlord to a tenant. Because a master lease is a single lease, it will not...
When Cap Rates Don't Matter
Monday, March 21
Most investors use cap rates as a metric to analyze the offering price and valuation of a property. Strictly using cap rates, however, can lead you to miss substantial value add opportunities. Many value add properties have a low cap rate. For example, the cap rate of a mom and pop owned prope...
Managing Tenant Issues
Monday, March 07
Many folks are hesitant to invest in real estate because they are fearful of a tenant defaulting by not paying rent. This is a justified concern, but not one that should stop you from investing in real estate. Here are some steps you can take to mitigate your concerns: Build in vacancy reserves ...
Benefits of Passively Investing in Real Estate
Monday, February 21
Busy professionals should not be excluded from real estate investing. If you are a busy professional, or simply not interested in learning about the ins and outs of real estate, but still want to earn returns from real estate investing, partnering with others could be the solution for you. Joint...
Due Diligence on Storage Deals
Monday, January 31
While many of the same rules apply when doing your due diligence on a storage facility purchase, there are some intricacies to consider. Here is a non-exhaustive list of some important due diligence items. -Consider obtaining a feasibility study to determine supply and demand, optimal unit mix,...
How to Add Value to a Storage Facility
Tuesday, January 18
A storage facility, like other commercial assets, is valued on its income. Thus, to add value to a storage facility, you must increase the income. Here are several strategies to increase a storage facility’s income. Raise rents If a facility was run by a mom and pop operator, it is unlikely t...