If a tenant fails to meet their financial commitments, it can place significant financial strain on the property owner (that's you @Todd Hotes) and also since these tenants are harder to find in some cases, can leave you facing a tough debt service when vacant.However unlike residential, these leases tend to be longer 5, 10 years etc. so investors who approach a hands off approach tend to gravitate to NNN... a great idea considering e-commerce and AI, our firm is interested in data centers and distribution centers.

The cap rate used to calculate the value of a particular apartment is derived from “comparable” cap rates of recently sold apartments.This derived cap rate is therefore market driven and by definition can not be controlled by the owner/seller.

How would the bank derive new valuation?

Commercial real estate lenders calculate interest on loans in three ways:✔️ 30/360✔️ Actual/365 (aka 365/365)✔️ Actual/360 (aka 365/360)Real estate underwriters should be aware of these 3 methods and understand which calculation the lender is using.The differences can have a significant impact on the amount of interest paid over the life of the loan.Similarly, it can also have an impact on the amount of cash flow that is available to be distributed to your investors.

I am partnering with a contractor buddy to fix and flip, how should we distribute the partnership?

I sold the first 3 at top of the market and personally made $520k in a 4 year period, plus distributions.

The profits from the sale are then redistributed with priority given to catching up on any missed preferred distributions. - -✅ Bottom Line: If a sponsor is offering a preferred return, it does not mean you will receive that % every year in distributions.

The areas by the Gulf have some high insurance premiums that are capping the prices... so not just mortgage rates.It would be interesting to see the distribution of the national numbers on new home starts, if they are clustered in TX.Anyway, I think perhaps with that much general "movement," the housing market in TX (its a massive state anyway), isn't entirely frozen like other markets.

Regular inspections and efficient handling of maintenance requests are key to maintaining a well-kept property.Rent collection and distribution.Efficient rent collection and distribution are vital for the financial success of your rental property.

Hi, I've gotten myself into a big pickle by taking a distribution out of my IRA believing that if I transferred the money from my traditional IRA to my Self Directed that I could spend it on Real Estate penalty free, and (some) taxes free.