Highest and Best Use of Capital Part Two: Investing for Scale
Tuesday, September 19
The scarcest resource To find the most profitable return on capital, it requires making timely decisions with limited information and cultivating access in the right places ahead of time. While it may seem like the most scarce resource in this game is capital, in reality the scarce resource is ...
Highest and Best Use of Capital Part One: Investing for Profit
Wednesday, August 09
Early on in learning about real estate investing, I was exposed to a beautiful and powerful concept: highest and best use. The idea is often explained with an example, so here’s a classic: There’s a growing town. In that town you may find a neighborhood that is transforming over time. A number of...
How to Be Super Extra Prepared as a Deal Sponsor
Friday, July 14
A Guide to Winning Lender and Investor Trust As a real estate deal sponsor, your ability to pull off successful transactions boils down to one fundamental aspect: capital. Unless you’re filthy rich and satisfied to invest only your own dollars, that capital typically comes from other capital so...
Determining Value in Commercial Real Estate
Tuesday, July 11
Ask two appraisers, get three opinions on property value. Or two brokers for that matter. Determining the value of a commercial property is far from simple. There are many different ways to assign a value to a parcel, whether it has been developed yet or not. I wasn’t able to find a single artic...
Building a Real Estate Development Track Record
Monday, June 12
Real estate development, in the simplest terms, is the process of turning money into properties that are ready to use. There are a lot of steps involved in that process, and several ways a deal can “go sideways”. In the pre-development phase, physical plans for the actual property are created, in...
There’s no “HELOC” for commercial; here's how to access your equity
Thursday, December 29
A Home Equity Line of Credit (“HELOC”) is one of the most popular financial products available for homeowners who have built up equity in their house. It’s a convenient alternative to a full refinance of the house - instead of pulling cash out and paying interest on the full amount, homeowners on...